Stock Analysis

Wai Ping Yan of Neo Telemedia Limited (HKG:8167) Just Spent HK$418k On Shares

SEHK:8167
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Even if it's not a huge purchase, we think it was good to see that Wai Ping Yan, a Neo Telemedia Limited (HKG:8167) insider, recently shelled out HK$418k to buy stock, at HK$0.082 per share. However, it only increased their shares held by 1.4%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Neo Telemedia

The Last 12 Months Of Insider Transactions At Neo Telemedia

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Haiquan Lie for HK$2.5m worth of shares, at about HK$0.13 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.23), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Neo Telemedia insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:8167 Insider Trading Volume November 26th 2020

Neo Telemedia is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Neo Telemedia insiders own 45% of the company, worth about HK$983m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Neo Telemedia Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Neo Telemedia. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Neo Telemedia has 3 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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