Are Insiders Buying LVGEM (China) Real Estate Investment Company Limited (HKG:95) Stock?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in LVGEM (China) Real Estate Investment Company Limited (HKG:95).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

See our latest analysis for LVGEM (China) Real Estate Investment

LVGEM (China) Real Estate Investment Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Hong King Wong for HK$235m worth of shares, at about HK$2.94 per share. That means that an insider was happy to buy shares at above the current price. It's very possible they regret the purchase, but it's more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term. Hong King Wong was the only insider to buy shares in the last twelve months. Notably Hong King Wong was also the biggest seller, having sold HK$235m worth of shares.

Hong King Wong purchased 81.83m shares over the year. The average price per share was HK$2.92. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

LVGEM (China) Real Estate Investment is not the only stock that insiders are buying. For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of LVGEM (China) Real Estate Investment

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. It's great to see that LVGEM (China) Real Estate Investment insiders own 69% of the company, worth about HK$950m. 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 LVGEM (China) Real Estate Investment Tell Us?

It is good to see recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about LVGEM (China) Real Estate Investment. That's what I like to see! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But note: LVGEM (China) Real Estate Investment may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.