Investors who take an interest in Impro Precision Industries Limited (HKG:1286) should definitely note that the Chairman & CEO, Ruibo Lu, recently paid HK$3.35 per share to buy HK$1.9m worth of the stock. Although the purchase only increased their holding by 0.05%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Impro Precision Industries
In fact, the recent purchase by Ruibo Lu was the biggest purchase of Impro Precision Industries shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$3.52. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Impro Precision Industries insider decided to buy shares at close to current prices. Ruibo Lu was the only individual insider to buy shares in the last twelve months.
Ruibo Lu bought a total of 892000 shares over the year at an average price of HK$3.38. The chart below shows insider transactions (by 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. Impro Precision Industries insiders own about HK$4.0b worth of shares (which is 60% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Impro Precision Industries Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Impro Precision Industries insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Of course, the future is what matters most. So if you are interested in Impro Precision Industries, you should check out this free report on analyst forecasts for the company.
But note: Impro Precision Industries 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.