Glory Mark Hi-Tech (Holdings) Limited (HKG:8159) insiders have profited after buying stock worth HK$5.4m last year, current gains stand at HK$2.5m

By
Simply Wall St
Published
November 12, 2021
SEHK:8159
Source: Shutterstock

Insiders who purchased Glory Mark Hi-Tech (Holdings) Limited (HKG:8159) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. Even after accounting for the recent loss, the HK$5.4m worth of stock purchased by them is now worth HK$7.9m or in other words, their investment continues to give good returns.

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.

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

The Last 12 Months Of Insider Transactions At Glory Mark Hi-Tech (Holdings)

In the last twelve months, the biggest single purchase by an insider was when Compliance Officer & Chairman Li Feng Wang bought HK$1.1m worth of shares at a price of HK$0.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Li Feng Wang bought a total of 52.60m shares over the year at an average price of HK$0.10. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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SEHK:8159 Insider Trading Volume November 12th 2021

Glory Mark Hi-Tech (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.

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. It appears that Glory Mark Hi-Tech (Holdings) insiders own 18% of the company, worth about HK$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Glory Mark Hi-Tech (Holdings) Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Glory Mark Hi-Tech (Holdings) shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Glory Mark Hi-Tech (Holdings) and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with Glory Mark Hi-Tech (Holdings) (including 1 which is a bit unpleasant).

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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