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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Easy Repay Finance & Investment Limited (HKG:8079).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Easy Repay Finance & Investment
The Last 12 Months Of Insider Transactions At Easy Repay Finance & Investment
While no particular insider transaction stood out, we can still look at the overall trading.
Yeuk Yuen Shiu bought a total of 775k shares over the year at an average price of HK$0.32. You can see the insider transactions (by 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!
Easy Repay Finance & Investment is not the only stock insiders are buying. So take a peek at this free list of growing 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Easy Repay Finance & Investment insiders own 38% of the company, worth about HK$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Easy Repay Finance & Investment Tell Us?
It doesn't really mean much that no insider has traded Easy Repay Finance & Investment shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Easy Repay Finance & Investment insiders are doubting the company, and they do own shares. Along with insider transactions, I recommend checking if Easy Repay Finance & Investment is growing revenue. This free chart of historic revenue and earnings should make that easy.