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Even if it's not a huge purchase, we think it was good to see that Kwok Pong Leung, a Finsoft Financial Investment Holdings Limited (HKG:8018) insider, recently shelled out HK$122k to buy stock, at HK$0.05 per share. However, we do note that it only increased their holding by 1.2%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Finsoft Financial Investment Holdings
The Last 12 Months Of Insider Transactions At Finsoft Financial Investment Holdings
In the last twelve months, the biggest single purchase by an insider was when insider Hui Hui Zhu Liang bought HK$15m worth of shares at a price of HK$0.12 per share. That means that even when the share price was higher than HK$0.05 (the recent price), an insider wanted to purchase shares. 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 209660000 shares for HK$21m. On the other hand they divested 56420000 shares, for HK$6.0m. Overall, Finsoft Financial Investment Holdings insiders were net buyers last year. They paid about HK$0.10 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Finsoft Financial Investment Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. We usually like to see fairly high levels of insider ownership. It appears that Finsoft Financial Investment Holdings insiders own 37% of the company, worth about HK$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Finsoft Financial Investment Holdings Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Finsoft Financial Investment Holdings we think they are probably pretty confident of a bright future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.