Bullish Adtiger Corporations Insiders Rewarded As Their Investment Rises To CN¥6.93m

Insiders who bought Adtiger Corporations Limited (HKG:1163) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$13m as a result of the stock's 10% gain over the same period. As a result, their original purchase of CN¥4.67m worth of stock is now worth CN¥6.93m.

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.

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Adtiger Corporations Insider Transactions Over The Last Year

The insider Wei Yang made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.7m worth of shares at a price of HK$0.093 each. Even though the purchase was made at a significantly lower price than the recent price (HK$0.15), 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.

Wei Yang bought a total of 45.59m shares over the year at an average price of HK$0.10. 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!

See our latest analysis for Adtiger Corporations

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).

Insider Ownership

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. It's great to see that Adtiger Corporations insiders own 47% of the company, worth about HK$65m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Adtiger Corporations Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Adtiger Corporations insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Every company has risks, and we've spotted 3 warning signs for Adtiger Corporations (of which 1 is a bit concerning!) you should know about.

Of course Adtiger Corporations may not be the best stock to buy. So you may wish to see this free collection of high quality 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.