Last week, V.S. International Group Limited (HKG:1002) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a HK$18m increase in the company's market worth, implying a 35% gain on their initial purchase. As a result, their original purchase of CN¥11.6m worth of stock is now worth CN¥15.7m.
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.
Check out our latest analysis for V.S. International Group
The Last 12 Months Of Insider Transactions At V.S. International Group
Over the last year, we can see that the biggest insider purchase was by insider Chong Huat Lui for HK$9.0m worth of shares, at about HK$0.058 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.077. 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.
V.S. International Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
V.S. International 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.
Does V.S. International Group Boast High Insider Ownership?
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. Insiders own 27% of V.S. International Group shares, worth about HK$52m. 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 Do The V.S. International Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded V.S. International Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in V.S. International 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. For example - V.S. International Group has 2 warning signs we think you should be aware of.
Of course V.S. International Group 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 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.