Insiders of Mokingran Jewellery Group Getting Good Value On Their CN¥36.3m Investment
Mokingran Jewellery Group Co., Ltd. (HKG:2585) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a HK$1.3b rise in the company's market capitalisation, translating to a gain of 176% on their initial investment. Put another way, the original CN¥36.3m acquisition is now worth CN¥100.0m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Mokingran Jewellery Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Vice GM Zegang Wang for HK$36m worth of shares, at about HK$12.33 per share. We do like to see buying, but this purchase was made at well below the current price of HK$33.98. 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.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Mokingran Jewellery Group
Mokingran Jewellery Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Mokingran Jewellery Group insiders own 47% of the company, currently worth about HK$4.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Mokingran Jewellery Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Mokingran Jewellery Group insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Mokingran Jewellery Group (including 2 which can't be ignored).
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 of direct interests only, but not derivative transactions or indirect interests.
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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.