Finsoft Financial Investment Holdings' Market Cap Up HK$3.0m Following Year Of Insider Stock Buying

Finsoft Financial Investment Holdings Limited (HKG:8018) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a HK$3.0m addition to the company’s market value. Put another way, the original HK$633.7k acquisition is now worth HK$1.06m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

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

The insider Xiongfeng Zhang made the biggest insider purchase in the last 12 months. That single transaction was for HK$584k worth of shares at a price of HK$0.023 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.039. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Xiongfeng Zhang bought a total of 27.16m shares over the year at an average price of HK$0.023. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Finsoft Financial Investment 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).

Insider Ownership Of Finsoft Financial Investment 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Finsoft Financial Investment Holdings insiders own 41% of the company, worth about HK$8.1m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Finsoft Financial Investment Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Finsoft Financial Investment Holdings insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Finsoft Financial Investment Holdings.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.