China Silver Technology Holdings Insiders HK$3.2m Short Of Breakeven On Stock Purchase

Insiders who purchased HK$22.6m worth of China Silver Technology Holdings Limited (HKG:515) shares over the past year recouped some of their losses after price gained 10% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at HK$3.2m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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China Silver Technology Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Youwen Zhang for HK$11m worth of shares, at about HK$0.10 per share. That means that an insider was happy to buy shares at above the current price of HK$0.086. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid HK$23m for 226.00m shares. But they sold 220.00m shares for HK$13m. In total, China Silver Technology Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for China Silver Technology Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

China Silver Technology Holdings Insiders Bought Stock Recently

Over the last quarter, China Silver Technology Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out HK$23m for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of China Silver Technology 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. It's great to see that China Silver Technology Holdings insiders own 46% of the company, worth about HK$45m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About China Silver Technology Holdings Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Silver Technology Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Silver Technology Holdings. To that end, you should learn about the 4 warning signs we've spotted with China Silver Technology Holdings (including 3 which can't be ignored).

But note: China Silver Technology 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 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.