Have Insiders Been Buying Amax International Holdings Limited (HKG:959) Shares This Year?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Amax International Holdings Limited (HKG:959).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Amax International Holdings
The Last 12 Months Of Insider Transactions At Amax International Holdings
Kwan-Hang Lam made the biggest insider purchase in the last 12 months. That single transaction was for HK$15m worth of shares at a price of HK$0.30 each. That means that an insider was happy to buy shares at above the current price. 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. It's not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders paid HK$30m for 101.93m shares. On the other hand they divested 77.88m shares, for HK$19m. Overall, Amax International Holdings insiders were net buyers last year. They paid about HK$0.30 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is HK$0.096. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Amax International Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Amax International Holdings. Specifically, Kam Wah Wong bought HK$7.0m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Amax International Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Amax International Holdings insiders own 55% of the company, worth about HK$63m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Amax International Holdings Tell Us?
It is good to see recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Amax International Holdings. Looks promising! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
Of course Amax International Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
