Insiders' HK$11.8m Investments In Red Following Oriental Payment Group Holdings' HK$35m Dip In Market Value

The recent price decline of 37% in Oriental Payment Group Holdings Limited's (HKG:8613) stock may have disappointed insiders who bought HK$11.8m worth of shares at an average price of HK$0.15 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth HK$2.47m which is not ideal.

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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The Last 12 Months Of Insider Transactions At Oriental Payment Group Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Chi Wah Tsang bought HK$11m worth of shares at a price of HK$0.15 per share. That means that an insider was happy to buy shares at above the current price of HK$0.031. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 79.54m shares worth HK$12m. On the other hand they divested 14.66m shares, for HK$1.3m. 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Oriental Payment Group Holdings

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).

Insiders At Oriental Payment Group Holdings Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Oriental Payment Group Holdings. insider Hok Man Choy divested only HK$259k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Oriental Payment Group Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Oriental Payment Group Holdings insiders own 44% of the company, currently worth about HK$26m based on the recent share price. 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 Does This Data Suggest About Oriental Payment Group Holdings Insiders?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 6 warning signs for Oriental Payment Group Holdings (4 are significant!) and we strongly recommend you look at these before investing.

Of course Oriental Payment Group Holdings 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.