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Potential Eternity Investment Limited (HKG:764) shareholders may wish to note that the Chairman & CEO, Hong Wai Lei, recently bought HK$964k worth of stock, paying HK$0.16 for each share. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.
View our latest analysis for Eternity Investment
Eternity Investment Insider Transactions Over The Last Year
Notably, that recent purchase by Hong Wai Lei is the biggest insider purchase of Eternity Investment shares that we've seen in the last year. That means that even when the share price was higher than HK$0.15 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Hong Wai Lei was the only individual insider to buy over the year.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Eternity Investment is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Eternity Investment
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Eternity Investment insiders own about HK$55m worth of shares (which is 9.5% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Eternity Investment Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Eternity Investment shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.