Insider Buyers At Sino Harbour Holdings Group Likely Disappointed With 19% Slide

The recent price decline of 19% in Sino Harbour Holdings Group Limited's (HKG:1663) stock may have disappointed insiders who bought CN¥20.3m worth of shares at an average price of CN¥0.08 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 CN¥16.8m which is not ideal.

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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The Last 12 Months Of Insider Transactions At Sino Harbour Holdings Group

Over the last year, we can see that the biggest insider purchase was by CEO, GM & Executive Chairman Lam Ping Wong for HK$1.5m worth of shares, at about HK$0.087 per share. That means that even when the share price was higher than HK$0.066 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. 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.

While Sino Harbour Holdings Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Sino Harbour Holdings 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).

Insiders At Sino Harbour Holdings Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Sino Harbour Holdings Group. We can see that CEO, GM & Executive Chairman Lam Ping Wong paid HK$5.7m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does Sino Harbour Holdings Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Sino Harbour Holdings Group insiders own about HK$36m worth of shares. That equates to 22% 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 Sino Harbour Holdings Group Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Sino Harbour Holdings Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Sino Harbour Holdings Group (1 is concerning) you should be aware of.

But note: Sino Harbour Holdings 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.