How Much Are Glory Mark Hi-Tech (Holdings) Limited (HKG:8159) Insiders Spending On Buying Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in Glory Mark Hi-Tech (Holdings) Limited (HKG:8159).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

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

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

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. Even though the purchase was made at a significantly lower price than the recent price (HK$0.14), we still think insider buying is a positive. 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. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insider Ownership of Glory Mark Hi-Tech (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. Glory Mark Hi-Tech (Holdings) insiders own about HK$22m worth of shares. That equates to 22% of the company. 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 Does This Data Suggest About Glory Mark Hi-Tech (Holdings) Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Glory Mark Hi-Tech (Holdings). While conducting our analysis, we found that Glory Mark Hi-Tech (Holdings) has 3 warning signs and it would be unwise to ignore them.

But note: Glory Mark Hi-Tech (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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