Insiders' HK$11.8m Investments In Red Following Oriental Payment Group Holdings' HK$19m Dip In Market Value

Insiders who bought HK$11.8m worth of Oriental Payment Group Holdings Limited's (HKG:8613) stock at an average buy price of HK$0.15 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth HK$4.61m, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Oriental Payment Group Holdings Insider Transactions Over The Last Year

The insider Chi Wah Tsang made the biggest insider purchase in the last 12 months. That single transaction was for HK$11m worth of shares at a price of HK$0.15 each. That means that even when the share price was higher than HK$0.058 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid HK$12m for 79.54m shares. But they sold 10.06m shares for HK$1.0m. In the last twelve months there was more buying than selling by Oriental Payment Group Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Oriental Payment Group Holdings

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Insiders At Oriental Payment Group Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Oriental Payment Group Holdings. In total, insider Hok Man Choy sold HK$667k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Oriental Payment Group Holdings insiders own about HK$43m worth of shares. That equates to 38% 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 Does This Data Suggest About Oriental Payment Group Holdings Insiders?

An insider sold Oriental Payment Group Holdings shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. 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. Our analysis shows 7 warning signs for Oriental Payment Group Holdings (4 shouldn't be ignored!) and we strongly recommend you look at them before investing.

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.