Investors who take an interest in Solargiga Energy Holdings Limited (HKG:757) should definitely note that insider Tan Hung Sze recently paid HK$0.51 per share to buy HK$2.6m worth of the stock. Although the purchase only increased their holding by 2.2%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Solargiga Energy Holdings
Notably, that recent purchase by Tan Hung Sze is the biggest insider purchase of Solargiga Energy Holdings shares that we've seen in the last year. That implies that an insider found the current price of HK$0.52 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Solargiga Energy Holdings insiders bought shares during the last year, they didn't sell. Their average price was about HK$0.15. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Solargiga Energy Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Solargiga Energy Holdings insiders own about HK$681m worth of shares. That equates to 39% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Solargiga Energy Holdings Tell Us?
The recent insider purchase is heartening. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Solargiga Energy Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Solargiga Energy Holdings has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course Solargiga Energy Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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