Cool Link (Holdings) Insiders Up S$163m On S$53.3m Investment

Insiders who bought Cool Link (Holdings) Limited (HKG:8491) in the last 12 months may probably not pay attention to the stock's recent 19% drop. Even after accounting for the recent loss, the S$53.3m worth of stock purchased by them is now worth S$216.8m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Cool Link (Holdings)

The Last 12 Months Of Insider Transactions At Cool Link (Holdings)

In the last twelve months, the biggest single purchase by an insider was when insider Yi Tian bought HK$22m worth of shares at a price of HK$0.57 per share. We do like to see buying, but this purchase was made at well below the current price of HK$2.27. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 95.51m shares for HK$53m. But they sold 13.79m shares for HK$5.1m. In the last twelve months there was more buying than selling by Cool Link (Holdings) insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Cool Link (Holdings) 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.

Cool Link (Holdings) Insiders Bought Stock Recently

Over the last quarter, Cool Link (Holdings) insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought HK$24m worth of shares. This makes one think the business has some good points.

Insider Ownership Of Cool Link (Holdings)

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Cool Link (Holdings) insiders own 28% of the company, worth about HK$258m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Cool Link (Holdings) Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cool Link (Holdings). Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Cool Link (Holdings) and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.