First Shanghai Investments Insiders Added HK$9.51m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of First Shanghai Investments Limited (HKG:227) stock, indicating that insiders' optimism about the company's prospects has increased.

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 First Shanghai Investments

The Last 12 Months Of Insider Transactions At First Shanghai Investments

In the last twelve months, the biggest single purchase by an insider was when Chairman Yuen Yat Lo bought HK$8.8m worth of shares at a price of HK$0.11 per share. That implies that an insider found the current price of HK$0.11 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

First Shanghai Investments 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. By clicking on the graph below, you can see the precise details of each insider transaction!

First Shanghai Investments is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does First Shanghai Investments Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. First Shanghai Investments insiders own about HK$52m worth of shares. That equates to 20% of the company. 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 Do The First Shanghai Investments Insider Transactions Indicate?

It doesn't really mean much that no insider has traded First Shanghai Investments shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in First Shanghai Investments and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for First Shanghai Investments (1 is a bit unpleasant) you should be aware of.

But note: First Shanghai Investments 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.

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