The recent 17% drop in Royal Century Resources Holdings Limited's (HKG:8125) stock could come as a blow to insiders who purchased HK$7.10m worth of stock at an average buy price of HK$0.16 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth HK$3.26m, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Royal Century Resources Holdings
Royal Century Resources Holdings Insider Transactions Over The Last Year
The insider Shing Kuen Li made the biggest insider purchase in the last 12 months. That single transaction was for HK$7.1m worth of shares at a price of HK$0.16 each. That means that an insider was happy to buy shares at above the current price of HK$0.073. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Shing Kuen Li was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Royal Century 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.
Insider Ownership Of Royal Century 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of Royal Century Resources Holdings shares, worth about HK$3.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Royal Century Resources Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Royal Century Resources Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Royal Century Resources Holdings and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Royal Century Resources Holdings. Case in point: We've spotted 2 warning signs for Royal Century Resources Holdings 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.