Bullish Risecomm Group Holdings Insiders Rewarded As Their Investment Rises To CN¥52.3m

Risecomm Group Holdings Limited (HKG:1679) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a HK$38m rise in the company's market capitalisation, translating to a gain of 171% on their initial investment. In other words, the original CN¥19.3m purchase is now worth CN¥52.3m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Risecomm Group Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Director Bailing Ye for HK$10.0m worth of shares, at about HK$0.50 per share. We do like to see buying, but this purchase was made at well below the current price of HK$1.36. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Risecomm Group Holdings insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Risecomm Group Holdings

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 Risecomm Group Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Risecomm Group Holdings insiders own 56% of the company, currently worth about HK$165m 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 Risecomm Group Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Risecomm Group Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Risecomm Group Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Risecomm Group Holdings. Be aware that Risecomm Group Holdings is showing 4 warning signs in our investment analysis, and 3 of those make us uncomfortable...

But note: Risecomm Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.