Hilong Holding Decline Means Insider Profits Down To CN¥199k

Insiders who purchased Hilong Holding Limited (HKG:1623) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After taking the recent loss into consideration, the CN¥1.46m worth of stock they bought is now worth CN¥1.66m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Hilong Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman and Co-CEO Jun Zhang for HK$593k worth of shares, at about HK$0.15 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.17), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Jun Zhang purchased 9.55m shares over the year. The average price per share was HK$0.15. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Hilong Holding

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Hilong Holding Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hilong Holding insiders own 45% of the company, currently worth about HK$132m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Hilong Holding Insider Transactions Indicate?

The fact that there have been no Hilong Holding insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Hilong Holding insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hilong Holding. For example - Hilong Holding has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.