Even if it’s not a huge purchase, we think it was good to see that Yan Chee Liu, the Executive Director & Compliance Officer of Mindtell Technology Limited (HKG:8611) recently shelled out RM320k to buy stock, at RM0.16 per share. However, we do note that it only increased their holding by 3.7%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Mindtell Technology
Notably, that recent purchase by Executive Director & Compliance Officer Yan Chee Liu was not the only time they bought Mindtell Technology shares this year. Earlier in the year, they paid HK$0.50 per share in a HK$3.6m purchase. That means that even when the share price was higher than HK$0.16 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yan Chee Liu was the only individual insider to buy shares in the last twelve months.
Yan Chee Liu bought a total of 18.1m shares over the year at an average price of HK$0.43. You can see the insider transactions (by 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!
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. It’s great to see that Mindtell Technology insiders own 74% of the company, worth about HK$46m. 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 Does This Data Suggest About Mindtell Technology Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Mindtell Technology. Nice! Along with insider transactions, I recommend checking if Mindtell Technology is growing revenue. This free chart of historic revenue and earnings should make that easy.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.