Limin Ge Just Bought 41,821% More Shares In Future Bright Mining Holdings Limited (HKG:2212)

Those following along with Future Bright Mining Holdings Limited (HKG:2212) will no doubt be intrigued by the recent purchase of shares by insider Limin Ge, who spent a stonking HK$15m on stock at an average price of HK$0.029. That purchase boosted their holding by 41,821%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Future Bright Mining Holdings

The Last 12 Months Of Insider Transactions At Future Bright Mining Holdings

Notably, that recent purchase by Limin Ge is the biggest insider purchase of Future Bright Mining Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$0.032. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Future Bright Mining Holdings insider decided to buy shares at close to current prices. Limin Ge was the only individual insider to buy shares in the last twelve months.

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!

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

Insider Ownership of Future Bright Mining Holdings

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. Future Bright Mining Holdings insiders own 57% of the company, currently worth about HK$90m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Future Bright Mining Holdings Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Future Bright Mining Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Future Bright Mining Holdings.

Of course Future Bright Mining Holdings 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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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