Insiders See HK$27.8m Investment In Hatcher Group Jump Last Week

Last week, Hatcher Group Limited (HKG:8365) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 40% last week, resulting in a HK$77m increase in the company's market worth, implying a 528% gain on their initial purchase. In other words, the original HK$27.8m purchase is now worth HK$174.7m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Hatcher Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Group Executive Chairman Man Keung Li for HK$21m worth of shares, at about HK$0.25 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$1.57), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Hatcher Group insiders bought shares during the last year, they didn't sell. 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!

Check out our latest analysis for Hatcher Group

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 Of Hatcher Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hatcher Group insiders own about HK$200m worth of shares (which is 74% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Hatcher Group Insider Transactions Indicate?

The fact that there have been no Hatcher Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Hatcher Group insiders feel good about the company's future. 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. Be aware that Hatcher Group is showing 4 warning signs in our investment analysis, and 3 of those don't sit too well with us...

Of course Hatcher Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.