While it might not be a big deal, we thought it was good to see that the Impro Precision Industries Limited (HKG: 1286) Executive Chairman and CEO Ruibo Lu recently bought shares worth HK $ 670,000 for HK $ 2.45 per share. Still, it only increased their stake by a tiny percentage, and it wasn’t a massive buy in absolute terms, either.
See our latest review for Impro Precision Industries
Insider Transactions of Impro Precision Industries in the Last Year
Notably, this recent purchase by Ruibo Lu is the biggest insider buyout of shares of Impro Precision Industries we’ve seen in the past year. This means that an insider was happy to buy shares above the current price of HK $ 2.40. Their perspective may have since changed, but it at least shows that they were feeling optimistic at the time. For us, it is very important to consider the price that insiders pay for stocks. It is encouraging to see an insider paid above the current price of the shares, as it suggests that he has seen value, even at higher levels. The only individual insider to buy in the past year was Ruibo Lu.
Ruibo Lu bought 455.00k shares during the year. The average price per share was HK $ 2.43. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you can see the exact detail of each insider trade!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Insider property of Impro Precision Industries
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Strong insider ownership often makes company management more concerned with the interests of shareholders. Insiders of Impro Precision Industries own 61% of the company, which is currently worth around HK $ 2.8 billion based on the recent share price. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
So what does this data suggest about the insiders of Impro Precision Industries?
The recent insider buying is encouraging. And the analysis of last year’s transactions also gives us confidence. However, we note that the company has not made a profit in the past twelve months, which makes us cautious. Besides the high number of insiders, this analysis suggests that insiders are quite optimistic about Impro Precision Industries. This is what I love to see! So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example – Impro Precision Industries has 1 warning sign we think you should be aware.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of interesting companies that have HIGH return on equity and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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