Insiders See HK$62.3m Investment In ETS Group Jump Last Week

Last week, ETS Group Limited (HKG:8031) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 21% last week, resulting in a HK$21m increase in the company's market worth, implying a 45% gain on their initial purchase. As a result, the stock they originally bought for HK$62.3m is now worth HK$90.3m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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ETS Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Head of Corporate Finance & Planning Man On Siu for HK$58m worth of shares, at about HK$0.28 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.40. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Man On Siu bought a total of 225.87m shares over the year at an average price of HK$0.28. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for ETS Group

ETS Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does ETS 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. ETS Group insiders own 71% of the company, currently worth about HK$84m 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 ETS Group Insider Transactions Indicate?

The fact that there have been no ETS Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like ETS Group insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that ETS Group has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course ETS Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.