Investors who take an interest in Arts Optical International Holdings Limited (HKG:1120) should definitely note that the Executive Director, Kim Ying Ng, recently paid HK$0.79 per share to buy HK$790k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 12%.
Arts Optical International Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Kim Ying Ng is the biggest insider purchase of Arts Optical International Holdings shares that we've seen in the last year. That means that even when the share price was higher than HK$0.78 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kim Ying Ng was the only individual insider to buy shares in the last twelve months.
Kim Ying Ng bought a total of 1.27m shares over the year at an average price of HK$0.79. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Of Arts Optical International Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Arts Optical International Holdings insiders own 70% of the company, currently worth about HK$210m 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 Arts Optical International Holdings Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Arts Optical International Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. To that end, you should learn about the 4 warning signs we've spotted with Arts Optical International Holdings (including 1 which is a bit concerning).
But note: Arts Optical International Holdings 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.
