With Vongroup Up 18%, Insider Buyers Count Their Returns

Vongroup Limited (HKG:318) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a HK$16m addition to the company’s market value. As a result, the stock they originally bought for HK$1.68m is now worth HK$1.86m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Vongroup Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Chairman Tat Ieong Vong for HK$710k worth of shares, at about HK$0.35 per share. That means that an insider was happy to buy shares at around the current price of HK$0.39. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Vongroup insider decided to buy shares at close to current prices. Tat Ieong Vong was the only individual insider to buy during the last year.

Tat Ieong Vong purchased 4.76m shares over the year. The average price per share was HK$0.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Vongroup

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Vongroup

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Vongroup insiders own about HK$66m worth of shares (which is 63% 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 Vongroup Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Vongroup 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, Vongroup 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 Vongroup. For example - Vongroup has 1 warning sign we think you should be aware of.

Of course Vongroup 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.