Insider Buys Additional HK$968k In Hunlicar Group Stock

Potential Hunlicar Group Limited (HKG:3638) shareholders may wish to note that the Executive Chairman, Lit Wan Cheung, recently bought HK$968k worth of stock, paying HK$8.35 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Hunlicar Group

Over the last year, we can see that the biggest insider purchase was by insider Sujuan Qiu for HK$7.1m worth of shares, at about HK$18.26 per share. That means that an insider was happy to buy shares at above the current price of HK$8.05. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Sujuan Qiu was also the biggest seller.

Happily, we note that in the last year insiders paid HK$11m for 718.00k shares. On the other hand they divested 980.00k shares, for HK$13m. Sujuan Qiu ditched 980.00k shares over the year. The average price per share was HK$13.71. 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!

View our latest analysis for Hunlicar Group

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Insider Ownership Of Hunlicar Group

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. It's great to see that Hunlicar Group insiders own 64% of the company, worth about HK$394m. 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 Hunlicar Group Insider Transactions Indicate?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Hunlicar Group that deserve your attention before buying any shares.

But note: Hunlicar Group 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.