Kong Au-Yeung Is The Founder of Perfect Shape Medical Limited (HKG:1830) And Just Spent HK$2.0m On Shares

Investors who take an interest in Perfect Shape Medical Limited (HKG:1830) should definitely note that the Founder, Kong Au-Yeung, recently paid HK$3.15 per share to buy HK$2.0m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Perfect Shape Medical

Perfect Shape Medical Insider Transactions Over The Last Year

Notably, that recent purchase by Founder Kong Au-Yeung was not the only time they bought Perfect Shape Medical shares this year. Earlier in the year, they paid HK$2.49 per share in a HK$144m purchase. We do like to see buying, but this purchase was made at well below the current price of HK$3.23. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid HK$310m for 121.23m shares. On the other hand they divested 20.70m shares, for HK$60m. In total, Perfect Shape Medical insiders bought more than they sold over the last year. 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!

Perfect Shape Medical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Perfect Shape Medical Boast High Insider Ownership?

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's great to see that Perfect Shape Medical insiders own 73% of the company, worth about HK$2.9b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Perfect Shape Medical Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Perfect Shape Medical. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Perfect Shape Medical.

But note: Perfect Shape Medical may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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