Trade Alert: Yat Yu Tin, Executive Chairman of Finsoft Financial Investment Holdings Limited (HKG:8018), Just Spent HK$527,000 to Buy 12% More Shares

While not a huge purchase, we think it was good to see that Yat Yu Tin, the executive chairman of Finsoft Financial Investment Holdings Limited (HKG:8018) recently paid HK$527,000 to buy shares, at HK$0.26 per share. This purchase may not be huge, but it increased their stake by 12%.

Check out our latest analysis for Finsoft Financial Investment Holdings

The last 12 months of insider trading at Finsoft Financial Investment Holdings

Notably, this recent purchase by Yat Yu Tin is the largest insider purchase of Finsoft Financial Investment Holdings stock we have seen in the past year. We like to see buy, but this buy was made well below the current price of HK$0.29. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.

Over the past twelve months, Finsoft Financial Investment Holdings insiders have bought shares, but not sold. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!

SEHK:8018 Insider Trading Volume January 21, 2022

There are always plenty of stocks that insiders are buying. 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 ownership of Finsoft Financial Investment Holdings

Many investors like to check how much a company is owned by insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Finsoft Financial Investment Holdings insiders own approximately HK$15 million in shares (or 42% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.

So what do Finsoft Financial Investment Holdings insider trading indicate?

The recent insider buying is encouraging. And an analysis of last year’s transactions also gives us confidence. But we don’t feel the same way about the company making losses. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about Finsoft Financial Investment Holdings. Pleasant! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. To do this, you need to find out about the 3 warning signs we spotted with Finsoft Financial Investment Holdings (2 of which were a bit nasty).

But note: Finsoft Financial Investment Holdings may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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