Insiders Enjoy HK$6.6m Return After Buying Productive Technologies Stock

Productive Technologies Company Limited (HKG:650) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. After accounting for the recent loss, the HK$4.42m worth of shares they purchased is now worth HK$11.0m, suggesting a good return on their investment.

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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Productive Technologies Insider Transactions Over The Last Year

The Executive Chairman & CEO Erzhuang Liu made the biggest insider purchase in the last 12 months. That single transaction was for HK$4.4m worth of shares at a price of HK$0.20 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.50. 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.

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!

View our latest analysis for Productive Technologies

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Productive Technologies insiders have about 0.8% of the stock, worth approximately HK$30m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Productive Technologies Insiders?

It doesn't really mean much that no insider has traded Productive Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Productive Technologies and we see no evidence to suggest they are worried about the 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. In terms of investment risks, we've identified 1 warning sign with Productive Technologies and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.