Palinda Group Holdings Insiders May Regret Not Buying More, Market Cap Hits HK$248m

Insiders who bought Palinda Group Holdings Limited (HKG:8179) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$102m as a result of the stock's 27% gain over the same period. In other words, the original HK$579.6k purchase is now worth HK$1.56m.

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.

See our latest analysis for Palinda Group Holdings

The Last 12 Months Of Insider Transactions At Palinda Group Holdings

In the last twelve months, the biggest single purchase by an insider was when Executive Chairlady & Compliance Officer Wei Huang bought HK$580k worth of shares at a price of HK$0.048 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.13. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Palinda Group Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Palinda Group Holdings shares, worth about HK$41m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Palinda Group Holdings Insiders?

It doesn't really mean much that no insider has traded Palinda Group Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Palinda Group Holdings and their transactions don't cause us concern. 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. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Palinda Group Holdings.

But note: Palinda Group Holdings 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.