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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Kinergy Corporation Ltd. (HKG:3302).
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, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Kinergy
The Last 12 Months Of Insider Transactions At Kinergy
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Kuak Choi Lim bought HK$3.4m worth of shares at a price of HK$0.84 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.66). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders paid HK$4.3m for 5.1m shares purchased. While Kinergy insiders bought shares last year, they didn't sell. 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!
Kinergy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Kinergy Insiders Bought Stock Recently
It's good to see that Kinergy insiders have made notable investments in the company's shares. In total, insiders bought S$4.3m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.