Insiders Buying Finsoft Financial Investment Holdings Might Wish They Invested More, Stock Gains 55%
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 55% resulting in a HK$8.1m addition to the company’s market value. In other words, the original HK$633.7k purchase is now worth HK$1.22m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Finsoft Financial Investment Holdings
Over the last year, we can see that the biggest insider purchase was by insider Xiongfeng Zhang for HK$584k worth of shares, at about HK$0.023 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.045. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Xiongfeng Zhang bought a total of 27.16m shares over the year at an average price of HK$0.023. 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 Finsoft Financial Investment Holdings
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
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. Finsoft Financial Investment Holdings insiders own about HK$9.7m worth of shares (which is 43% 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 Finsoft Financial Investment Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Finsoft Financial Investment Holdings. One for the watchlist, at least! 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. You'd be interested to know, that we found 3 warning signs for Finsoft Financial Investment Holdings and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
About SEHK:8018
Finsoft Financial Investment Holdings
An investment holding company, provides financial trading software solutions in Hong Kong.
Excellent balance sheet low.
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