Insider Buyers Lose Additional HK$130k As Vertical International Holdings Dips To HK$37m

The recent price decline of 25% in Vertical International Holdings Limited's (HKG:8375) stock may have disappointed insiders who bought HK$1.1m worth of shares at an average price of HK$0.15 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only HK$989k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Vertical International Holdings

Vertical International Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Ho Yin Boon for HK$426k worth of shares, at about HK$0.15 per share. That means that an insider was happy to buy shares at above the current price of HK$0.13. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ho Yin Boon was the only individual insider to buy shares in the last twelve months.

Ho Yin Boon purchased 7.61m shares over the year. The average price per share was HK$0.15. 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!

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

Does Vertical International Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that Vertical International Holdings insiders own 65% of the company, worth about HK$24m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Vertical International Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Vertical International Holdings insiders feel good about the company's 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. Our analysis shows 3 warning signs for Vertical International Holdings (2 are a bit unpleasant!) and we strongly recommend you look at them before investing.

Of course Vertical International 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.