International Housewares Retail's Market Cap Drops To HK$993m Leaving Insiders With Losses

Insiders who bought HK$7.76m worth of International Housewares Retail Company Limited's (HKG:1373) stock at an average buy price of HK$1.88 over the last year may be disappointed by the recent 10% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only HK$5.70m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for International Housewares Retail

The Last 12 Months Of Insider Transactions At International Housewares Retail

Notably, that recent purchase by Co-Founder & Honorary Chairman Pak Fai Lau was not the only time they bought International Housewares Retail shares this year. They previously made an even bigger purchase of HK$723k worth of shares at a price of HK$2.19 per share. That means that even when the share price was higher than HK$1.38 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

International Housewares Retail insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$1.88. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

International Housewares Retail is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

International Housewares Retail Insiders Bought Stock Recently

It's good to see that International Housewares Retail insiders have made notable investments in the company's shares. In total, insiders bought HK$3.8m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. International Housewares Retail insiders own about HK$177m worth of shares. That equates to 18% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About International Housewares Retail Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about International Housewares Retail. Nice! 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 International Housewares Retail and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.