Insider Buying: Hong Wee Lee Just Spent HK$9.2m On Sandmartin International Holdings Limited (HKG:482) Shares

By
Simply Wall St
Published
July 25, 2021
SEHK:482
Source: Shutterstock

Those following along with Sandmartin International Holdings Limited (HKG:482) will no doubt be intrigued by the recent purchase of shares by insider Hong Wee Lee, who spent a stonking HK$9.2m on stock at an average price of HK$0.42. That increased their holding by a full 365%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Sandmartin International Holdings

The Last 12 Months Of Insider Transactions At Sandmartin International Holdings

In fact, the recent purchase by Hong Wee Lee was the biggest purchase of Sandmartin International Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$0.41. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Sandmartin International Holdings insiders bought shares during the last year, they didn't sell. The average buy price was around HK$0.48. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:482 Insider Trading Volume July 26th 2021

Sandmartin International Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Sandmartin International Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Sandmartin International Holdings insiders own about HK$40m worth of shares. That equates to 20% 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.

What Might The Insider Transactions At Sandmartin International Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Sandmartin International Holdings we think they are probably pretty confident of a bright future. While we like knowing 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. For instance, we've identified 3 warning signs for Sandmartin International Holdings (2 are a bit unpleasant) you should be aware of.

But note: Sandmartin International 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. 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.
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