Stock Analysis

Executive Chairman Yat Yu Tin Just Bought 37% More Shares In Finsoft Financial Investment Holdings Limited (HKG:8018)

SEHK:8018
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Potential Finsoft Financial Investment Holdings Limited (HKG:8018) shareholders may wish to note that the Executive Chairman, Yat Yu Tin, recently bought HK$1.6m worth of stock, paying HK$0.046 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 37%.

View our latest analysis for Finsoft Financial Investment Holdings

The Last 12 Months Of Insider Transactions At Finsoft Financial Investment Holdings

Notably, that recent purchase by Executive Chairman Yat Yu Tin was not the only time they bought Finsoft Financial Investment Holdings shares this year. Earlier in the year, they paid HK$0.058 per share in a HK$2.9m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.044). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 151.01m shares for HK$8.2m. On the other hand they divested 228.24m shares, for HK$13m. Over the last year we saw more insider selling of Finsoft Financial Investment Holdings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
SEHK:8018 Insider Trading Volume December 1st 2020

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Insider Ownership of Finsoft Financial Investment Holdings

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. Insiders own 31% of Finsoft Financial Investment Holdings shares, worth about HK$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Finsoft Financial Investment Holdings Insiders?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Finsoft Financial Investment Holdings insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Finsoft Financial Investment Holdings you should be aware of, and 2 of these are a bit concerning.

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.

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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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