Ourgame International Holdings Limited (HKG:6899) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman of the Board, Yangyang Li, recently bought a whopping HK$20m worth of stock, at a price of HK$0.17. That purchase boosted their holding by 188%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Ourgame International Holdings

Ourgame International Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Yangyang Li was the biggest purchase of Ourgame International Holdings shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.27. 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.

Yangyang Li bought a total of 224.11m shares over the year at an average price of HK$0.18. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Ourgame International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Ourgame International Holdings insiders own 6.9% of the company, worth about HK$20m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Ourgame International Holdings Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Ourgame International Holdings shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Ourgame International Holdings.

But note: Ourgame International 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, but not derivative transactions.

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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.