Whilst it may not be a huge deal, we thought it was good to see that the Neo Telemedia Limited (HKG:8167) Executive Chairman, Haiquan Lie, recently bought HK$133k worth of stock, for HK$0.13 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Neo Telemedia

The Last 12 Months Of Insider Transactions At Neo Telemedia

The insider Wai Ping Yan made the biggest insider purchase in the last 12 months. That single transaction was for HK$9.8m worth of shares at a price of HK$0.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.10). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Neo Telemedia insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Neo Telemedia insiders own about HK$523m worth of shares (which is 52% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Neo Telemedia Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Neo Telemedia. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neo Telemedia. Our analysis shows 3 warning signs for Neo Telemedia (2 make us uncomfortable!) and we strongly recommend you look at these before investing.

But note: Neo Telemedia 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.

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