Investors who take an interest in Vobile Group Limited (HKG:3738) should definitely note that the Non-Executive Director, J. Wargo, recently paid HK$2.53 per share to buy HK$1.6m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for Vobile Group
Vobile Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Jian Lu, sold HK$12m worth of shares at a price of HK$6.63 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$2.56). So it may not shed much light on insider confidence at current levels. Jian Lu was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 3.43m shares for HK$14m. But insiders sold 1.75m shares worth HK$12m. In total, Vobile Group insiders bought more than they sold over the last year. The average buy price was around HK$4.11. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!SEHK:3738 Insider Trading Volume September 22nd 2022
Vobile Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Vobile Group insiders own 24% of the company, worth about HK$1.3b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Vobile Group Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Vobile Group. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vobile Group. At Simply Wall St, we found 2 warning signs for Vobile Group that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.