Those following along with Water Oasis Group Limited (HKG:1161) will no doubt be intrigued by the recent purchase of shares by Lai Chu Yu, Co-Founder & Executive Director of the company, who spent a stonking HK$5.1m on stock at an average price of HK$0.85. Not only is that a big swing, but it increased their holding size by 33%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Water Oasis Group
In fact, the recent purchase by Lai Chu Yu was the biggest purchase of Water Oasis Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$0.85. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Water Oasis Group share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid HK$6.1m for 6.90m shares. But insiders sold 8.00m shares worth HK$8.1m. Lai Ying Ling sold a total of 8.00m shares over the year at an average price of HK$1.01. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Water Oasis Group insiders own 46% of the company, currently worth about HK$267m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Water Oasis Group Insiders?
It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Water Oasis Group insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Water Oasis Group you should know about.
But note: Water Oasis 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.
