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Even if it's not a huge purchase, we think it was good to see that Yuen Yat Lo, the Chairman of First Shanghai Investments Limited (HKG:227) recently shelled out HK$80k to buy stock, at HK$0.38 per share. However, we do note that it only increased their holding by 0.1%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for First Shanghai Investments
The Last 12 Months Of Insider Transactions At First Shanghai Investments
In fact, the recent purchase by Yuen Yat Lo was the biggest purchase of First Shanghai Investments shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$0.38. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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. The only individual insider to buy over the last year was Yuen Yat Lo.
Yuen Yat Lo bought 336000 shares over the last 12 months at an average price of HK$0.38. 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!
First Shanghai Investments 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 of First Shanghai Investments
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. First Shanghai Investments insiders own about HK$120m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At First Shanghai Investments Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest First Shanghai Investments insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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.