Water Oasis Group Co-Founder & Executive Director Acquires 33% More Stock

Those following along with Water Oasis Group Limited (HKG:1161) will no doubt be intrigued by the recent purchase of shares by Lai Chu Yu, Co-Founder & Executive Director of the company, who spent a stonking HK$5.1m on stock at an average price of HK$0.85. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 33%.

Check out our latest analysis for Water Oasis Group

Water Oasis Group Insider Transactions Over The Last Year

In fact, the recent purchase by Lai Chu Yu was the biggest purchase of Water Oasis Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.85. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Water Oasis Group insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid HK$6.1m for 6.90m shares. On the other hand they divested 8.00m shares, for HK$8.1m. Lai Ying Ling ditched 8.00m shares over the year. The average price per share was HK$1.01. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Water Oasis Group insiders own about HK$267m worth of shares (which is 46% of the company). 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 Water Oasis Group Tell Us?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Water Oasis Group insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Water Oasis Group has 2 warning signs and it would be unwise to ignore these.

Of course Water Oasis Group 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.