Insiders See HK$6.15m Investment In Ocean One Holding Jump Last Week

Ocean One Holding Ltd. (HKG:8476) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a HK$64m addition to the company’s market value. Put another way, the original HK$6.15m acquisition is now worth HK$9.24m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ocean One Holding

The Last 12 Months Of Insider Transactions At Ocean One Holding

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Kin Fung Chan for HK$3.6m worth of shares, at about HK$1.30 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$2.20), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Kin Fung Chan bought 4.20m shares over the last 12 months at an average price of HK$1.46. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ocean One Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ocean One Holding insiders own 74% of the company, currently worth about HK$453m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ocean One Holding Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Ocean One Holding. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ocean One Holding. At Simply Wall St, we found 1 warning sign for Ocean One Holding that deserve your attention before buying any shares.

Of course Ocean One Holding may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.