A HK$12m market cap addition is just what Future Data Group Limited (HKG:8229) insiders like to see after purchasing stock worth HK$5.0m

By
Simply Wall St
Published
January 12, 2022
SEHK:8229
Source: Shutterstock

Insiders who bought Future Data Group Limited (HKG:8229) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$12m as a result of the stock's 12% gain over the same period. As a result, the stock they originally bought for HK$5.0m is now worth HK$6.6m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Future Data Group

Future Data Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Director Guolin Tao bought HK$5.0m worth of shares at a price of HK$0.22 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.29. 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.

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:8229 Insider Trading Volume January 12th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Future Data Group

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. Insiders own 5.7% of Future Data Group shares, worth about HK$6.6m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Future Data Group Insiders?

The fact that there have been no Future Data Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Future Data Group insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Future Data Group. For example - Future Data Group has 2 warning signs we think you should be aware of.

But note: Future Data Group 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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