Despite Prime Intelligence Solutions Group's Pullback, Insiders Still Gained HK$486k

Prime Intelligence Solutions Group Limited (HKG:8379) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. Even after accounting for the recent loss, the HK$3.00m worth of stock purchased by them is now worth HK$3.49m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Prime Intelligence Solutions Group

The Last 12 Months Of Insider Transactions At Prime Intelligence Solutions Group

In the last twelve months, the biggest single purchase by an insider was when insider Zixuan Ren bought HK$3.0m worth of shares at a price of HK$0.094 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.11. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Prime Intelligence Solutions Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Have Prime Intelligence Solutions Group Insiders Traded Recently?

In the last three months company insider Cho Lung Hui divested HK$26k worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership Of Prime Intelligence Solutions Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Prime Intelligence Solutions Group insiders own about HK$29m worth of shares. That equates to 33% 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 Prime Intelligence Solutions Group Insiders?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Prime Intelligence Solutions Group and their transactions don't cause us concern. 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 5 warning signs (3 shouldn't be ignored!) that you ought to be aware of before buying any shares in Prime Intelligence Solutions Group.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com