Insiders Rewarded With HK$229m Addition To Investment As Synertone Communication Stock Hits HK$472m

Synertone Communication Corporation (HKG:1613) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a HK$64m addition to the company’s market value. As a result, the stock they originally bought for HK$32.0m is now worth HK$260.7m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Synertone Communication Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Mianfeng Li bought HK$32m worth of shares at a price of HK$0.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.88. 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.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Synertone Communication

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Synertone Communication

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Synertone Communication insiders own 66% of the company, worth about HK$311m. 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 Synertone Communication Insider Transactions Indicate?

The fact that there have been no Synertone Communication insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Synertone Communication insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Synertone Communication. For example, Synertone Communication has 4 warning signs (and 1 which is potentially serious) we think you should know about.

Of course Synertone Communication 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.