Jia Group Holdings Gains 34%, Insider Trades Reap Benefit

Jia Group Holdings Limited (HKG:8519) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 34% resulting in a HK$14m addition to the company’s market value. As a result, the stock they originally bought for HK$949.3k is now worth HK$1.13m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Jia Group Holdings

Jia Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairperson & CEO Pui Yain Wong for HK$414k worth of shares, at about HK$0.069 per share. That means that even when the share price was higher than HK$0.047 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Pui Yain Wong was the only individual insider to buy shares in the last twelve months.

Pui Yain Wong bought a total of 24.10m shares over the year at an average price of HK$0.039. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Jia Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Jia Group Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Jia Group Holdings insiders own 52% of the company, worth about HK$28m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Jia Group Holdings Insider Transactions Indicate?

The fact that there have been no Jia Group Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Jia Group Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jia Group Holdings. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Jia Group Holdings.

But note: Jia 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.