Insider Buyers At Sino Harbour Holdings Group Likely Disappointed With 15% Slide
The recent 15% drop in Sino Harbour Holdings Group Limited's (HKG:1663) stock could come as a blow to insiders who purchased CN¥21.5m worth of stock at an average buy price of CN¥0.076 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CN¥11.6m, which is not great.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Sino Harbour Holdings Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, GM & Executive Chairman Lam Ping Wong bought HK$1.5m worth of shares at a price of HK$0.087 per share. That means that even when the share price was higher than HK$0.041 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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 Sino Harbour Holdings Group insiders were buying shares, but not selling. Their average price was about HK$0.076. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Check out our latest analysis for Sino Harbour Holdings Group
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Sino Harbour Holdings Group Insiders Bought Stock Recently
Over the last quarter, Sino Harbour Holdings Group insiders have spent a meaningful amount on shares. Specifically, CEO, GM & Executive Chairman Lam Ping Wong bought HK$3.4m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Sino Harbour Holdings Group Boast High 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. Sino Harbour Holdings Group insiders own about HK$25m worth of shares. That equates to 25% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Sino Harbour Holdings Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Sino Harbour Holdings Group shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Sino Harbour Holdings Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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