Insiders who bought HK$4.14m worth of Prime Intelligence Solutions Group Limited (HKG:8379) stock in the last year recovered part of their losses as the stock rose by 22% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled HK$1.3m since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Prime Intelligence Solutions Group
Over the last year, we can see that the biggest insider purchase was by insider Yuancong Li for HK$4.1m worth of shares, at about HK$0.14 per share. That means that an insider was happy to buy shares at above the current price of HK$0.093. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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. Yuancong 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Prime Intelligence Solutions Group
Prime Intelligence Solutions 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 Prime Intelligence Solutions Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 39% of Prime Intelligence Solutions Group shares, worth about HK$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Prime Intelligence Solutions Group Tell Us?
It doesn't really mean much that no insider has traded Prime Intelligence Solutions Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Prime Intelligence Solutions Group insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Prime Intelligence Solutions Group is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course Prime Intelligence Solutions 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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