Whilst it may not be a huge deal, we thought it was good to see that the Ever Harvest Group Holdings Limited (HKG:1549) Executive Chairman, Yu Leung Lau, recently bought HK$633k worth of stock, for HK$0.18 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Check out our latest analysis for Ever Harvest Group Holdings
Ever Harvest Group Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman Yu Leung Lau was not the only time they bought Ever Harvest Group Holdings shares this year. They previously made an even bigger purchase of HK$646k worth of shares at a price of HK$0.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.19). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yu Leung Lau was the only individual insider to buy shares in the last twelve months.
Yu Leung Lau bought 40.82m shares over the last 12 months at an average price of HK$0.19. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ever Harvest Group 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.
Does Ever Harvest Group Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Ever Harvest Group Holdings insiders own 68% of the company, currently worth about HK$199m based on the recent share price. 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 Ever Harvest Group Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Ever Harvest Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Ever Harvest Group Holdings has 2 warning signs and it would be unwise to ignore them.
Of course Ever Harvest Group 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.