Have Insiders Been Buying Hi-Level Technology Holdings Limited (HKG:8113) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Hi-Level Technology Holdings Limited (HKG:8113).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Hi-Level Technology Holdings

The Last 12 Months Of Insider Transactions At Hi-Level Technology Holdings

In the last twelve months, the biggest single purchase by an insider was when Chairman Yuk-Lun Yim bought HK$642k worth of shares at a price of HK$0.33 per share. That means that an insider was happy to buy shares at around the current price of HK$0.38. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Hi-Level Technology Holdings share holders is that an insider was buying at near the current price. Yuk-Lun Yim was the only individual insider to buy shares in the last twelve months.

Yuk-Lun Yim bought a total of 7.92m shares over the year at an average price of HK$0.32. 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!

Hi-Level Technology 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 Hi-Level Technology Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 31% of Hi-Level Technology Holdings shares, worth about HK$75m. 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 Hi-Level Technology Holdings Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Hi-Level Technology Holdings insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hi-Level Technology Holdings. For instance, we've identified 2 warning signs for Hi-Level Technology Holdings (1 makes us a bit uncomfortable) you should be aware of.

Of course Hi-Level Technology 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, 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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