Whilst it may not be a huge deal, we thought it was good to see that the Sing Lee Software (Group) Limited (HKG:8076) Co-Founder, Yung Hung, recently bought HK$407k worth of stock, for HK$0.17 per share. That might not be a big purchase but it only increased their holding by 3.8%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Sing Lee Software (Group)
In fact, the recent purchase by Yung Hung was the biggest purchase of Sing Lee Software (Group) shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$0.17. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Sing Lee Software (Group) share holders is that insiders were buying at near the current price.
Sing Lee Software (Group) insiders may have bought shares in the last year, but they didn't sell any. They paid about HK$0.13 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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.
Does Sing Lee Software (Group) Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.5% of Sing Lee Software (Group) shares, worth about HK$15m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Sing Lee Software (Group) Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Sing Lee Software (Group) insiders are well aligned, and that they may think the share price is too low. 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, 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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