As ITC Properties Group Limited (HKG:199) hits HK$1.1b market cap, insiders may be dismayed about not purchasing higher quantities

By
Simply Wall St
Published
November 17, 2021
SEHK:199
Source: Shutterstock

Insiders who bought ITC Properties Group Limited (HKG:199) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$125m as a result of the stock's 13% gain over the same period. Put another way, the original HK$2.9m acquisition is now worth HK$3.6m.

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.

See our latest analysis for ITC Properties Group

The Last 12 Months Of Insider Transactions At ITC Properties Group

The insider Yuen Lan Ng made the biggest insider purchase in the last 12 months. That single transaction was for HK$528k worth of shares at a price of HK$0.96 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.14. 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.

Yuen Lan Ng purchased 3.14m shares over the year. The average price per share was HK$0.94. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:199 Insider Trading Volume November 17th 2021

ITC Properties Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of ITC Properties Group

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. It's great to see that ITC Properties Group insiders own 60% of the company, worth about HK$661m. 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 ITC Properties Group Insider Transactions Indicate?

The fact that there have been no ITC Properties Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, ITC Properties Group insiders feel good about the company's future. 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. In terms of investment risks, we've identified 2 warning signs with ITC Properties Group and understanding these should be part of your investment process.

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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