Insiders See HK$63.1m Investment In Art Group Holdings Jump Last Week

Art Group Holdings Limited (HKG:565) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 60% resulting in a HK$497m addition to the company’s market value. As a result, the stock they originally bought for HK$63.1m is now worth HK$100.8m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Art Group Holdings

The Last 12 Months Of Insider Transactions At Art Group Holdings

The insider Cho Ying Lam made the biggest insider purchase in the last 12 months. That single transaction was for HK$63m worth of shares at a price of HK$0.31 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.49. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Art Group Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Art Group Holdings insiders own 45% of the company, worth about HK$594m. 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 Art Group Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Art Group Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Art Group Holdings. When we did our research, we found 2 warning signs for Art Group Holdings (1 is a bit unpleasant!) that we believe deserve your full attention.

Of course Art Group 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.