Potential Perfect Shape Medical Limited (HKG:1830) shareholders may wish to note that the Founder, Kong Au-Yeung, recently bought HK$2.1m worth of stock, paying HK$2.83 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.2%.
The Last 12 Months Of Insider Transactions At Perfect Shape Medical
Notably, that recent purchase by Founder Kong Au-Yeung was not the only time they bought Perfect Shape Medical shares this year. Earlier in the year, they paid HK$3.35 per share in a HK$11m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.70). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Kong Au-Yeung was the only individual insider to buy over the year.
Kong Au-Yeung bought 7024000 shares over the last 12 months at an average price of HK$3.24. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Perfect Shape Medical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Perfect Shape Medical Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Perfect Shape Medical insiders own 69% of the company, currently worth about HK$2.1b based on the recent share price. 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 Perfect Shape Medical Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Perfect Shape Medical. Looks promising! Along with insider transactions, I recommend checking if Perfect Shape Medical is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
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.