Insiders who bought in the last 12 months lose an additional HK$718k as Finsoft Financial Investment Holdings Limited (HKG:8018) drops to HK$20m

Insiders who bought HK$3.6m worth of Finsoft Financial Investment Holdings Limited's (HKG:8018) stock at an average buy price of HK$0.20 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth HK$2.9m, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Finsoft Financial Investment Holdings

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

The Executive Chairman Yat Yu Tin made the biggest insider purchase in the last 12 months. That single transaction was for HK$804k worth of shares at a price of HK$0.20 each. That means that even when the share price was higher than HK$0.16 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yat Yu Tin was the only individual insider to buy during the last year.

Yat Yu Tin bought a total of 17.92m shares over the year at an average price of HK$0.20. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Finsoft Financial Investment Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Finsoft Financial Investment Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Finsoft Financial Investment Holdings insiders own about HK$7.9m 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.

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

The fact that there have been no Finsoft Financial Investment Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Finsoft Financial Investment Holdings and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Finsoft Financial Investment Holdings and we suggest you have a look.

But note: Finsoft Financial Investment Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.