Insiders Enjoy HK$50m Return After Buying Hong Kong Robotics Group Holding Stock

Insiders who purchased Hong Kong Robotics Group Holding Limited (HKG:370) shares in the past 12 months are unlikely to be deeply impacted by the stock's 14% decline over the past week. After taking the recent loss into consideration, the HK$15.1m worth of stock they bought is now worth HK$65.5m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Hong Kong Robotics Group Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Meng Zhe Li for HK$15m worth of shares, at about HK$0.17 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.75. 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.

Over the last year, we can see that insiders have bought 87.30m shares worth HK$15m. But insiders sold 450.00k shares worth HK$690k. In total, Hong Kong Robotics Group Holding insiders bought more than they sold over the last year. 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!

View our latest analysis for Hong Kong Robotics Group Holding

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Hong Kong Robotics Group Holding Insiders Bought Stock Recently

There was some insider buying at Hong Kong Robotics Group Holding over the last quarter. CEO & Director Haitao Li shelled out HK$325k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Hong Kong Robotics Group Holding insiders own 43% of the company, worth about HK$671m. 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 Hong Kong Robotics Group Holding Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Hong Kong Robotics Group Holding insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of 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. For instance, we've identified 2 warning signs for Hong Kong Robotics Group Holding (1 is a bit unpleasant) you should be aware of.

But note: Hong Kong Robotics Group Holding 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.