Lisi Group (Holdings) Insiders Up CN¥47m On CN¥60.8m Investment

Insiders who bought Lisi Group (Holdings) Limited (HKG:526) stock lover the last 12 months are probably not as affected by last week’s 10.0% loss. Reason being, despite the recent loss, insiders original purchase value of CN¥60.8m is now worth CN¥108.0m.

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 Lisi Group (Holdings)

Lisi Group (Holdings) Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Alexia David bought HK$61m worth of shares at a price of HK$0.076 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.14), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see the insider transactions (by companies and 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!

Lisi Group (Holdings) is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Lisi Group (Holdings)

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Lisi Group (Holdings) insiders own 57% of the company, worth about HK$676m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Lisi Group (Holdings) Tell Us?

It doesn't really mean much that no insider has traded Lisi Group (Holdings) shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Lisi Group (Holdings) insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Lisi Group (Holdings).

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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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.