Q Technology (Group) Company Limited (HKG:1478) Insiders Increased Their Holdings
HKG:1478)." data-reactid="28">We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Q Technology (Group) Company Limited (HKG:1478).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
study found that 'insider purchases earn abnormal returns of more than 6% per year." data-reactid="31">We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for Q Technology (Group) " data-reactid="32"> See our latest analysis for Q Technology (Group)
Q Technology (Group) Insider Transactions Over The Last Year
The Executive Chairman of the Board, Ningning He, made the biggest insider sale in the last 12 months. That single transaction was for HK$205m worth of shares at a price of HK$13.68 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$10.82. So it is hard to draw any strong conclusion from it. Ningning He was the only individual insider to sell shares in the last twelve months. Notably Ningning He was also the biggest buyer, having purchased HK$216m worth of shares.
Happily, we note that in the last year insiders paid HK$216m for 16.53m shares. But insiders sold 15000000 shares worth HK$205m. In the last twelve months there was more buying than selling by Q Technology (Group) insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
SEHK:1478 Recent Insider Trading May 17th 2020
list of growing companies with insider buying." data-reactid="48">Q Technology (Group) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Q Technology (Group)
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Q Technology (Group) insiders own 66% of the company, worth about HK$8.3b. 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 Q Technology (Group) Insider Transactions Indicate?
3 warning signs for Q Technology (Group) and we suggest you have a look." data-reactid="52">It doesn't really mean much that no insider has traded Q Technology (Group) shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Q Technology (Group) insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Q Technology (Group). You'd be interested to know, that we found 3 warning signs for Q Technology (Group) and we suggest you have a look.
collection of high quality companies." data-reactid="57">Of course Q Technology (Group) 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading." data-reactid="59">If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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