We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Sau San Tong Holdings Limited (HKG:8200).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
The Last 12 Months Of Insider Transactions At Sau San Tong Holdings
Over the last year, we can see that the biggest insider purchase was by insider Yuen May May Ho for HK$20m worth of shares, at about HK$0.30 per share. That means that an insider was happy to buy shares at above the current price of HK$0.08. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for 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 Yuen May May Ho. Notably Yuen May May Ho was also the biggest seller.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Sau San Tong Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Sau San Tong Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Sau San Tong Holdings insiders own about HK$8.5m worth of shares (which is 14% of the company). But they may have an indirect interest through a corporate structure that we haven’t picked up on. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About Sau San Tong Holdings Insiders?
It doesn’t really mean much that no insider has traded Sau San Tong Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Sau San Tong Holdings insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Sau San Tong Holdings. Case in point: We’ve spotted 5 warning signs for Sau San Tong Holdings you should be aware of, and 2 of these are a bit unpleasant.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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