Stock Analysis

This Art Group Holdings Insider Increased Their Holding In The Last Year

Published
SEHK:565

Looking at Art Group Holdings Limited's (HKG:565 ) 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 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.

See our latest analysis for Art Group Holdings

Art Group Holdings Insider Transactions Over The Last Year

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. That means that an insider was happy to buy shares at around the current price of HK$0.32. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Cho Ying Lam. We note that Cho Ying Lam was both the biggest buyer and the biggest seller.

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!

SEHK:565 Insider Trading Volume June 25th 2024

Art Group Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Art Group Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Art Group Holdings. In total, insider Cho Ying Lam sold HK$9.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Art Group Holdings insiders own about HK$384m worth of shares (which is 45% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Art Group Holdings Insider Transactions Indicate?

An insider hasn't bought Art Group Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. 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. At Simply Wall St, we've found that Art Group Holdings has 3 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

But note: Art Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.