Insiders Enjoy HK$1.7m Return After Buying CASH Financial Services Group Stock

CASH Financial Services Group Limited (HKG:510) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 28% decline in the stock price. Even after accounting for the recent loss, the HK$6.70m worth of stock purchased by them is now worth HK$8.44m or in other words, their investment continues to give good returns.

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.

Check out our latest analysis for CASH Financial Services Group

The Last 12 Months Of Insider Transactions At CASH Financial Services Group

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Pak Hoo Kwan bought HK$4.9m worth of shares at a price of HK$0.24 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.30. 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.

While CASH Financial Services Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. From our data, it seems that CASH Financial Services Group insiders own 7.6% of the company, worth about HK$9.9m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The CASH Financial Services Group Insider Transactions Indicate?

The fact that there have been no CASH Financial Services Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if CASH Financial Services Group insiders bought more shares in the company. While it's good to be aware of 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. To that end, you should learn about the 3 warning signs we've spotted with CASH Financial Services Group (including 1 which can't be ignored).

But note: CASH Financial Services Group 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.