Those following along with Risecomm Group Holdings Limited (HKG:1679) will no doubt be intrigued by the recent purchase of shares by insider Xiaoqin Fu, who spent a stonking HK$8.2m on stock at an average price of HK$0.57. That increased their holding by a full 77%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Risecomm Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by insider Xiaoqin Fu was not their only acquisition of Risecomm Group Holdings shares this year. Earlier in the year, they paid HK$0.57 per share in a HK$11m purchase. That means that an insider was happy to buy shares at above the current price of HK$0.39. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid HK$29m for 45.13m shares. But insiders sold 14.40m shares worth HK$8.2m. In the last twelve months there was more buying than selling by Risecomm Group Holdings insiders. Their average price was about HK$0.64. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Risecomm Group 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.

Does Risecomm 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Risecomm Group Holdings insiders own 60% of the company, currently worth about HK$60m 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 Risecomm Group Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Risecomm Group Holdings. 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. Be aware that Risecomm Group Holdings is showing 6 warning signs in our investment analysis, and 3 of those are significant...

But note: Risecomm Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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