Investors who take an interest in InvesTech Holdings Limited (HKG:1087) should definitely note that the Executive Director, Yat Yu Tin, recently paid HK$1.01 per share to buy HK$2.7m worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 19%.

Check out our latest analysis for InvesTech Holdings

The Last 12 Months Of Insider Transactions At InvesTech Holdings

In fact, the recent purchase by Executive Director Yat Yu Tin was not their only acquisition of InvesTech Holdings shares this year. Earlier in the year, they paid HK$1.80 per share in a HK$3.6m purchase. That means that an insider was happy to buy shares at above the current price of HK$0.90. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months InvesTech Holdings insiders were buying shares, but not selling. They paid about HK$1.50 on average. These transactions suggest that insiders have considered the current price attractive. 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!

InvesTech Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of InvesTech Holdings shares, worth about HK$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At InvesTech Holdings Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. 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 InvesTech 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. At Simply Wall St, we found 3 warning signs for InvesTech Holdings that deserve your attention before buying any shares.

Of course InvesTech Holdings 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, 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.