Trade Alert: Yang Liu At Silver Base Group Holdings Limited (HKG:886), Has Just Spent HK$352k Buying A Small Number of Shares

Whilst it may not be a huge deal, we thought it was good to see that Yang Liu, who is a company insider, recently bought HK$352k worth of stock, for HK$0.16 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Silver Base Group Holdings

Silver Base Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by insider Yang Liu was not their only acquisition of Silver Base Group Holdings shares this year. They previously made an even bigger purchase of HK$974k worth of shares at a price of HK$0.22 per share. That means that an insider was happy to buy shares at above the current price of HK$0.18. 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 is very important. 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. Yang Liu was the only individual insider to buy during the last year.

Yang Liu bought a total of 6.75m shares over the year at an average price of HK$0.20. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Silver Base Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Silver Base Group Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Silver Base Group Holdings insiders own about HK$244m worth of shares (which is 61% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Silver Base Group Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Silver Base Group Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Silver Base Group Holdings. To that end, you should learn about the 3 warning signs we've spotted with Silver Base Group Holdings (including 1 which shouldn't be ignored).

But note: Silver Base 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, but not derivative transactions.

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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. 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.
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