Last week, Ever Sunshine Services Group Limited (HKG:1995) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 19% last week, resulting in a HK$484m increase in the company's market worth, implying a 34% gain on their initial purchase. Put another way, the original CN¥11.6m acquisition is now worth CN¥15.5m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Ever Sunshine Services Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Hongbin Zhou for HK$3.4m worth of shares, at about HK$1.36 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.73. 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.
Ever Sunshine 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Ever Sunshine Services Group Insiders Bought Stock Recently
Over the last quarter, Ever Sunshine Services Group insiders have spent a meaningful amount on shares. We can see that President Hongbin Zhou paid HK$967k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of Ever Sunshine Services Group
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. We usually like to see fairly high levels of insider ownership. Ever Sunshine Services Group insiders own about HK$300m worth of shares. That equates to 10% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Ever Sunshine Services Group Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ever Sunshine Services Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ever Sunshine Services Group. For example - Ever Sunshine Services Group has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
