Compliance Officer & Chairman Li Feng Wang Just Bought 100% More Shares In Glory Mark Hi-Tech (Holdings) Limited (HKG:8159)

Investors who take an interest in Glory Mark Hi-Tech (Holdings) Limited (HKG:8159) should definitely note that the Compliance Officer & Chairman, Li Feng Wang, recently paid HK$0.11 per share to buy HK$1.1m worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 100%.

Check out our latest analysis for Glory Mark Hi-Tech (Holdings)

Glory Mark Hi-Tech (Holdings) Insider Transactions Over The Last Year

In fact, the recent purchase by Li Feng Wang was the biggest purchase of Glory Mark Hi-Tech (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$0.10. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. 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. Li Feng Wang was the only individual insider to buy shares in the last twelve months.

Li Feng Wang bought 20.00m shares over the last 12 months at an average price of HK$0.10. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Does Glory Mark Hi-Tech (Holdings) Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Glory Mark Hi-Tech (Holdings) insiders own about HK$13m worth of shares. That equates to 18% 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 Glory Mark Hi-Tech (Holdings) Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Glory Mark Hi-Tech (Holdings) we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Glory Mark Hi-Tech (Holdings).

Of course Glory Mark Hi-Tech (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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