Insiders At Risecomm Group Holdings See Good Returns After Buying Stock Worth CN¥19.3m

Risecomm Group Holdings Limited (HKG:1679) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. Even after accounting for the recent loss, the CN¥19.3m worth of stock purchased by them is now worth CN¥24.3m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Risecomm Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Director Bailing Ye for HK$10.0m worth of shares, at about HK$0.50 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.63), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Risecomm Group Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Risecomm Group Holdings

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).

Does Risecomm Group Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Risecomm Group Holdings insiders own 56% of the company, currently worth about HK$77m based on the recent share price. 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 Does This Data Suggest About Risecomm Group Holdings Insiders?

It doesn't really mean much that no insider has traded Risecomm Group Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Risecomm Group Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Risecomm Group Holdings. Every company has risks, and we've spotted 4 warning signs for Risecomm Group Holdings (of which 3 are concerning!) you should know about.

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 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.