Pacific Legend Group Executive Chairperson of the Board Acquires 16% More Stock

Investors who take an interest in Pacific Legend Group Limited (HKG:8547) should definitely note that the Executive Chairperson of the Board, Wing Man Wong, recently paid HK$0.25 per share to buy HK$3.7m worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 16%.

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The Last 12 Months Of Insider Transactions At Pacific Legend Group

Notably, that recent purchase by Executive Chairperson of the Board Wing Man Wong was not the only time they bought Pacific Legend Group shares this year. They previously made an even bigger purchase of HK$4.3m worth of shares at a price of HK$0.18 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.25), 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.

Happily, we note that in the last year insiders paid HK$13m for 78.76m shares. But insiders sold 28.13m shares worth HK$6.0m. In total, Pacific Legend Group 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. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Pacific Legend Group

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

Does Pacific Legend Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Pacific Legend Group insiders own about HK$33m worth of shares. That equates to 33% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Pacific Legend Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. 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 Pacific Legend Group insiders are well aligned, and that they may think the share price is too low. 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 Pacific Legend Group (2 make us uncomfortable!) that we believe deserve your full attention.

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.