Even if it's not a huge purchase, we think it was good to see that Haitao Sun, the Founder of 51 Credit Card Inc. (HKG:2051) recently shelled out HK$501k to buy stock, at HK$0.25 per share. However, it only increased their shares held by 1.8%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At 51 Credit Card
Notably, that recent purchase by Haitao Sun is the biggest insider purchase of 51 Credit Card shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing 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. Haitao Sun was the only individual insider to buy during the last year.
Haitao Sun bought a total of 2.85m shares over the year at an average price of HK$0.25. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
51 Credit Card 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 51 Credit Card
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of 51 Credit Card shares, worth about HK$45m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At 51 Credit Card 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. Insiders likely see value in 51 Credit Card shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for 51 Credit Card and we suggest you have a look.
But note: 51 Credit Card 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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