A HK$29m Market Cap Boost Pleasing ToGrown Up Group Investment Holdings Insiders
Grown Up Group Investment Holdings Limited (HKG:1842) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 56%, resulting in a HK$29m rise in the company's market capitalisation, translating to a gain of 70% on their initial investment. In other words, the original HK$7.92m purchase is now worth HK$13.4m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Grown Up Group Investment Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Cho Man Lee is the biggest insider purchase of Grown Up Group Investment Holdings shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$0.056. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Grown Up Group Investment Holdings
Grown Up Group Investment Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Grown Up Group Investment Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Grown Up Group Investment Holdings insiders own about HK$18m worth of shares. That equates to 23% of the company. 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 Grown Up Group Investment Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Grown Up Group Investment Holdings insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Grown Up Group Investment Holdings (of which 1 is significant!) you should know about.
Of course Grown Up Group Investment 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 of direct interests only, but not derivative transactions or indirect interests.
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