Potential FriendTimes Inc. (HKG:6820) shareholders may wish to note that the Founder, Xiaohuang Jiang, recently bought HK$1.7m worth of stock, paying HK$0.56 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for FriendTimes
FriendTimes Insider Transactions Over The Last Year
In fact, the recent purchase by Founder Xiaohuang Jiang was not their only trade of FriendTimes shares this year. They previously made a sale of -HK$72m worth of shares at a price of HK$0.75 per share. So what is clear is that an insider saw fit to sell at around the current price of HK$0.72. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Xiaohuang Jiang divested 190.00m shares over the last 12 months at an average price of CN¥0.75. 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does FriendTimes Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that FriendTimes insiders own 62% of the company, worth about HK$945m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About FriendTimes Insiders?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: FriendTimes 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.
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