Insiders who purchased CN¥21.2m worth of Breton Technology Co., Ltd. (HKG:1333) shares over the past year recouped some of their losses after price gained 19% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CN¥5.0m since the time of purchase.
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.
Breton Technology Insider Transactions Over The Last Year
The Founder Fangming Chen made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.2m worth of shares at a price of HK$21.16 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$14.35). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Fangming Chen was the only individual insider to buy during the last year.
Fangming Chen purchased 1.13m shares over the year. The average price per share was HK$18.74. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Breton Technology
Breton Technology 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Breton Technology insiders own 24% of the company, currently worth about HK$1.4b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Breton Technology Tell Us?
It doesn't really mean much that no insider has traded Breton Technology shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Breton Technology insiders feel good about the company's future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But note: Breton Technology 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.
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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.