Executive Chairman Wang Gaw Just Bought A Handful Of Shares In Pioneer Global Group Limited (HKG:224)

Whilst it may not be a huge deal, we thought it was good to see that the Pioneer Global Group Limited (HKG:224) Executive Chairman, Wang Gaw, recently bought HK$195k worth of stock, for HK$1.09 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Pioneer Global Group

The Last 12 Months Of Insider Transactions At Pioneer Global Group

In fact, the recent purchase by Executive Chairman Wang Gaw was not their only acquisition of Pioneer Global Group shares this year. They previously made an even bigger purchase of HK$273k worth of shares at a price of HK$1.51 per share. That means that an insider was happy to buy shares at above the current price of HK$1.09. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Wang Gaw. We note that Wang Gaw was also the biggest seller.

Wang Gaw purchased 1.03m shares over the year. The average price per share was HK$1.13. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Pioneer Global Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Pioneer Global Group insiders own about HK$845m worth of shares (which is 67% 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 Pioneer Global Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Pioneer Global Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Pioneer Global Group that deserve your attention before buying any shares.

But note: Pioneer Global Group 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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