Investors who take an interest in CASH Financial Services Group Limited (HKG:510) should definitely note that the Executive Chairman & CEO, Pak Hoo Kwan, recently paid HK$0.24 per share to buy HK$878k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.
The Last 12 Months Of Insider Transactions At CASH Financial Services Group
In fact, the recent purchase by Executive Chairman & CEO Pak Hoo Kwan was not their only acquisition of CASH Financial Services Group shares this year. Earlier in the year, they paid HK$0.24 per share in a HK$4.9m purchase. That means that even when the share price was higher than HK$0.23 (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. 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.
CASH Financial Services Group insiders may have bought shares in the last year, but they didn't sell any. 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!
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. Insiders own 7.6% of CASH Financial Services Group shares, worth about HK$7.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About CASH Financial Services Group Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on CASH Financial Services Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CASH Financial Services Group. You'd be interested to know, that we found 3 warning signs for CASH Financial Services Group and we suggest you have a look.
But note: CASH Financial Services 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
