Insider Purchases Worth HK$15.9m See Losses As Prime Intelligence Solutions Group Market Value Drops To HK$78m

Insiders who bought HK$15.9m worth of Prime Intelligence Solutions Group Limited's (HKG:8379) stock at an average buy price of HK$0.12 over the last year may be disappointed by the recent 13% decrease in the stock. 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$13.2m.

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

Prime Intelligence Solutions Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Chairman of the Board Yicheng Wang for HK$11m worth of shares, at about HK$0.12 per share. That means that even when the share price was higher than HK$0.097 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yicheng Wang was the only individual insider to buy during the last year.

Yicheng Wang purchased 136.23m shares over the year. The average price per share was HK$0.12. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Prime Intelligence Solutions Group insiders own 50% of the company, worth about HK$39m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Prime Intelligence Solutions Group Insiders?

The fact that there have been no Prime Intelligence Solutions Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Prime Intelligence Solutions Group insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Prime Intelligence Solutions Group you should be aware of.

But note: Prime Intelligence Solutions Group 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 of direct interests only, but not derivative transactions or indirect interests.

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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.