Asia-Pac Financial Investment Company Limited (HKG:8193) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. Even after accounting for the recent loss, the HK$5.82m worth of stock purchased by them is now worth HK$13.6m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Asia-Pac Financial Investment Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Xiaoge Ru bought HK$4.7m worth of shares at a price of HK$0.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.25. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid HK$5.8m for 54.33m shares. On the other hand they divested 7.74m shares, for HK$2.1m. In the last twelve months there was more buying than selling by Asia-Pac Financial Investment insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Asia-Pac Financial Investment

Asia-Pac Financial Investment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Asia-Pac Financial Investment Have Sold Stock Recently

The last three months saw significant insider selling at Asia-Pac Financial Investment. Specifically, insider Liu Shengnan ditched HK$2.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Asia-Pac Financial Investment insiders own 18% of the company, worth about HK$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Asia-Pac Financial Investment Insider Transactions Indicate?

An insider sold Asia-Pac Financial Investment shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Asia-Pac Financial Investment (including 2 which are a bit unpleasant).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.