Huabang Technology Holdings Limited (HKG:3638) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 19%, resulting in a HK$62m rise in the company's market capitalisation, translating to a gain of 128% on their initial investment. As a result, their original purchase of HK$57.0m worth of stock is now worth HK$129.9m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Huabang Technology Holdings

The Last 12 Months Of Insider Transactions At Huabang Technology Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Lit Wan Cheung bought HK$23m worth of shares at a price of HK$0.18 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.41. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 313.04m shares for HK$57m. But insiders sold 37.64m shares worth HK$11m. In total, Huabang Technology Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Huabang Technology Holdings Have Bought Stock Recently

Over the last quarter, Huabang Technology Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought HK$52m worth of shares. This makes one think the business has some good points.

Insider Ownership Of Huabang Technology Holdings

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. Huabang Technology Holdings insiders own about HK$109m worth of shares. That equates to 28% 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 Huabang Technology Holdings Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Huabang Technology Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Huabang Technology Holdings. Our analysis shows 4 warning signs for Huabang Technology Holdings (2 are concerning!) and we strongly recommend you look at them before investing.

But note: Huabang Technology Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.