When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Leoch International Technology Limited's (HKG:842) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Leoch International Technology
In the last twelve months, the biggest single sale by an insider was when the Chief Executive Officer, Kouyue Wu, sold HK$557k worth of shares at a price of HK$2.79 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$2.26. So it may not shed much light on insider confidence at current levels. Notably Kouyue Wu was also the biggest buyer, having purchased HK$1.0m worth of shares.
Over the last year, we can see that insiders have bought 470.00k shares worth HK$1.0m. On the other hand they divested 325.00k shares, for HK$881k. In the last twelve months there was more buying than selling by Leoch International Technology insiders. They paid about HK$2.13 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Leoch International Technology
Leoch International Technology is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Leoch International Technology Insiders Traded Recently?
We saw Insiders buy shares worth HK$883k in the last three months. However that only slightly eclipses the sales, HK$881k worth of sales. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Leoch International Technology Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Leoch International Technology insiders own about HK$2.3b worth of shares (which is 72% of the company). 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 Do The Leoch International Technology Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Leoch International Technology insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Leoch International Technology. Our analysis shows 3 warning signs for Leoch International Technology (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.
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.