Peking University Resources (Holdings) Company Limited (HKG:618) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 126% resulting in a HK$602m addition to the company’s market value. As a result, their original purchase of CN¥34.2m worth of stock is now worth CN¥59.3m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Peking University Resources (Holdings)
Peking University Resources (Holdings) Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Mengyi Chen bought HK$17m worth of shares at a price of HK$0.23 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.40. 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.
Peking University Resources (Holdings) 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Peking University Resources (Holdings) is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Peking University Resources (Holdings) Have Bought Stock Recently
It's good to see that Peking University Resources (Holdings) insiders have made notable investments in the company's shares. In total, insiders bought HK$34m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Peking University Resources (Holdings)
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. Insiders own 38% of Peking University Resources (Holdings) shares, worth about HK$409m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Peking University Resources (Holdings) Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Peking University Resources (Holdings). That's what I like to see! 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. For instance, we've identified 2 warning signs for Peking University Resources (Holdings) (1 doesn't sit too well with us) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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