This Sino Harbour Holdings Group Insider Increased Their Holding In The Last Year

Looking at Sino Harbour Holdings Group Limited's (HKG:1663 ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Sino Harbour Holdings Group

In fact, the recent purchase by CEO, GM & Executive Chairman Lam Ping Wong was not their only acquisition of Sino Harbour Holdings Group shares this year. They previously made an even bigger purchase of HK$1.2m worth of shares at a price of HK$0.065 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.064). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Lam Ping Wong was the only individual insider to buy shares in the last twelve months.

Lam Ping Wong bought 52.38m shares over the last 12 months at an average price of HK$0.063. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Sino Harbour Holdings Group

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Does Sino Harbour Holdings Group 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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Sino Harbour Holdings Group insiders own 15% of the company, worth about HK$23m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Sino Harbour Holdings Group Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Sino Harbour Holdings Group insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Sino Harbour Holdings Group (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.