A HK$31m Market Cap Boost Pleasing ToBright Future Technology Holdings Insiders

Insiders who bought Bright Future Technology Holdings Limited (HKG:1351) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$31m as a result of the stock's 26% gain over the same period. As a result, their original purchase of CN¥10.3m worth of stock is now worth CN¥17.8m.

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.

View our latest analysis for Bright Future Technology Holdings

Bright Future Technology Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Shen Ming for HK$10m worth of shares, at about HK$0.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.25. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Bright Future Technology 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Bright Future Technology Holdings insiders own 66% of the company, currently worth about HK$99m based on the recent share price. 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 Does This Data Suggest About Bright Future Technology Holdings Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Bright Future Technology Holdings. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 6 warning signs we've spotted with Bright Future Technology Holdings (including 4 which can't be ignored).

Of course Bright Future Technology 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 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.