MOS House Group Reaches HK$247m Market Cap Benefiting Insider Stock Buying

MOS House Group Limited (HKG:1653) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 126%, resulting in a HK$138m rise in the company's market capitalisation, translating to a gain of 157% on their initial investment. In other words, the original HK$656.8k purchase is now worth HK$1.69m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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MOS House Group Insider Transactions Over The Last Year

The Executive Chairman & CEO Simon Tso made the biggest insider purchase in the last 12 months. That single transaction was for HK$612k worth of shares at a price of HK$0.34 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.87. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Simon Tso bought 1.94m shares over the last 12 months at an average price of HK$0.34. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for MOS House Group

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

Does MOS House Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 39% of MOS House Group shares, worth about HK$96m. 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 Does This Data Suggest About MOS House Group Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think MOS House Group insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for MOS House Group (2 make us uncomfortable!) that we believe deserve your full attention.

Of course MOS House Group 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.