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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Truly International Holdings Limited (HKG:732), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Truly International Holdings
The Last 12 Months Of Insider Transactions At Truly International Holdings
Over the last year, we can see that the biggest insider purchase was by Executive Chairman & MD Wai Lam for HK$199m worth of shares, at about HK$1.18 per share. That means that even when the share price was higher than HK$1.10 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 169.3m shares worth HK$200m. But insiders sold 4.6m shares worth HK$5.7m. In the last twelve months there was more buying than selling by Truly International Holdings insiders. 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!
Truly International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Truly International Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Truly International Holdings. Specifically, VP, Purchasing & Procurement Director & Executive Director Bei Bei Song bought HK$597k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.