Stock Analysis

Yu Tak International Holdings Reaches HK$86m Market Cap Benefiting Insider Stock Buying

SEHK:8048
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Last week, Yu Tak International Holdings Limited (HKG:8048) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a HK$7.8m increase in the company's market worth, implying a 120% gain on their initial purchase. As a result, their original purchase of HK$1.63m worth of stock is now worth HK$3.58m.

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.

View our latest analysis for Yu Tak International Holdings

Yu Tak International Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Cheunghung Lau bought HK$1.6m worth of shares at a price of HK$0.02 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.044. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:8048 Insider Trading Volume March 5th 2024

Yu Tak International 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 Yu Tak International Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Yu Tak International Holdings insiders own 59% of the company, currently worth about HK$51m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Yu Tak International Holdings Tell Us?

It doesn't really mean much that no insider has traded Yu Tak International Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Yu Tak International Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. At Simply Wall St, we found 3 warning signs for Yu Tak International Holdings that deserve your attention before buying any shares.

Of course Yu Tak International 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 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.