Whilst it may not be a huge deal, we thought it was good to see that the Neo Telemedia Limited (HKG:8167) Chairman of the Board, Haiquan Lie, recently bought HK$189k worth of stock, for HK$0.093 per share. However, we do note that it only increased their holding by 0.05%, and it wasn't a huge purchase by absolute value, either.
Neo Telemedia Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman of the Board Haiquan Lie was not the only time they bought Neo Telemedia shares this year. Earlier in the year, they paid HK$0.12 per share in a HK$558k purchase. That means that an insider was happy to buy shares at above the current price of HK$0.10. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Neo Telemedia insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Neo Telemedia is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Neo Telemedia Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It's great to see that Neo Telemedia insiders own 45% of the company, worth about HK$440m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Neo Telemedia Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Neo Telemedia insiders are well aligned, and quite possibly think the share price is too low. Nice! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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, but not derivative transactions.
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