A HK$68m Market Cap Boost Pleasing ToTimeless Resources Holdings Insiders

Last week, Timeless Resources Holdings Limited (HKG:8028) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 48% last week, resulting in a HK$68m increase in the company's market worth, implying a 131% gain on their initial purchase. Put another way, the original HK$23.1m acquisition is now worth HK$53.4m.

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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Timeless Resources Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Felipe Tan for HK$8.8m worth of shares, at about HK$0.18 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.41. 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.

Timeless Resources Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!

View our latest analysis for Timeless Resources Holdings

Timeless Resources Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Timeless Resources Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Timeless Resources Holdings insiders own 55% of the company, worth about HK$115m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Timeless Resources Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Timeless Resources Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Timeless Resources Holdings insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Timeless Resources Holdings (2 are a bit concerning!) that we believe deserve your full attention.

But note: Timeless Resources 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.

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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.