One Lee & Man Paper Manufacturing Insider Raised Their Stake In The Previous Year

Looking at Lee & Man Paper Manufacturing Limited's (HKG:2314 ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Lee & Man Paper Manufacturing

The Last 12 Months Of Insider Transactions At Lee & Man Paper Manufacturing

Over the last year, we can see that the biggest insider purchase was by insider Wan Lee for HK$8.4m worth of shares, at about HK$2.64 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.36). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Wan Lee was the only individual insider to buy during the last year.

Wan Lee purchased 7.64m shares over the year. The average price per share was HK$2.70. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lee & Man Paper Manufacturing is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Lee & Man Paper Manufacturing Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Lee & Man Paper Manufacturing insiders own 73% of the company, worth about HK$7.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Lee & Man Paper Manufacturing Tell Us?

It doesn't really mean much that no insider has traded Lee & Man Paper Manufacturing 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, Lee & Man Paper Manufacturing insiders feel good about the company's future. While we like knowing 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. For example, Lee & Man Paper Manufacturing has 2 warning signs (and 1 which can't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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.