A HK$12m Market Cap Boost Pleasing ToNew Amante Group Insiders

New Amante Group Limited (HKG:8412) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 29%, resulting in a HK$12m rise in the company's market capitalisation, translating to a gain of 22% on their initial investment. As a result, the stock they originally bought for HK$5.00m is now worth HK$6.08m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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New Amante Group Insider Transactions Over The Last Year

The Executive Chairman of the Board Liangping Ma made the biggest insider purchase in the last 12 months. That single transaction was for HK$5.0m worth of shares at a price of HK$0.37 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.45. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

See our latest analysis for New Amante Group

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).

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. New Amante Group insiders own about HK$35m worth of shares (which is 63% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The New Amante Group Insider Transactions Indicate?

The fact that there have been no New Amante Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, New Amante Group insiders feel good about the company's future. 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. Every company has risks, and we've spotted 1 warning sign for New Amante Group you should know about.

Of course New Amante 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.