Hilong Holding Insiders May Regret Not Buying More, Market Cap Hits HK$534m

Hilong Holding Limited (HKG:1623) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a HK$76m rise in the company's market capitalisation, translating to a gain of 63% on their initial investment. Put another way, the original CN¥581.1k acquisition is now worth CN¥945.0k.

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 Hilong Holding

The Last 12 Months Of Insider Transactions At Hilong Holding

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Jun Zhang bought HK$581k worth of shares at a price of HK$0.19 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.32. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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 Hilong Holding insiders own 47% of the company, worth about HK$253m. 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 Does This Data Suggest About Hilong Holding Insiders?

It doesn't really mean much that no insider has traded Hilong Holding shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Hilong Holding 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 Hilong Holding. Case in point: We've spotted 4 warning signs for Hilong Holding you should be aware of, and 2 of these are concerning.

Of course Hilong Holding 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.