Bullish Classified Group (Holdings) Insiders Loaded Up On HK$13.3m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Classified Group (Holdings) Limited (HKG:8232). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Classified Group (Holdings)

The Last 12 Months Of Insider Transactions At Classified Group (Holdings)

The Co-Founder & Executive Director Kin-Yee Pong made the biggest insider purchase in the last 12 months. That single transaction was for HK$8.3m worth of shares at a price of HK$0.43 each. That means that an insider was happy to buy shares at above the current price of HK$0.39. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Classified Group (Holdings) insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Classified Group (Holdings) is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Classified Group (Holdings)

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Classified Group (Holdings) insiders own about HK$15m worth of shares (which is 72% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Classified Group (Holdings) Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Classified Group (Holdings) insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 6 warning signs for Classified Group (Holdings) you should be aware of, and 5 of these are a bit unpleasant.

But note: Classified Group (Holdings) 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 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.