Investors who take an interest in Impro Precision Industries Limited (HKG:1286) should definitely note that the Chairman & CEO, Ruibo Lu, recently paid HK$3.30 per share to buy HK$3.3m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.09%.
The Last 12 Months Of Insider Transactions At Impro Precision Industries
Notably, that recent purchase by Chairman & CEO Ruibo Lu was not the only time they bought Impro Precision Industries shares this year. They previously made an even bigger purchase of HK$4.4m worth of shares at a price of HK$3.53 per share. That means that an insider was happy to buy shares at above the current price of HK$3.39. 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. To us, it's very important to consider the price insiders pay 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. The only individual insider to buy over the last year was Ruibo Lu.
Ruibo Lu bought 8.24m shares over the last 12 months at an average price of HK$3.33. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insider Ownership of Impro Precision Industries
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Impro Precision Industries insiders own 61% of the company, currently worth about HK$3.9b 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 Impro Precision Industries Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Impro Precision Industries. That's what I like to see! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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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