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Insider Buying: The Ka Shui International Holdings Limited (HKG:822) Director of Planning & Management and Executive Director Just Bought HK$85k Worth Of Shares

Simply Wall St ·  Jun 21, 2022 18:45

Even if it's not a huge purchase, we think it was good to see that So Wah Chan, the Director of Planning & Management and Executive Director of Ka Shui International Holdings Limited (HKG:822) recently shelled out HK$85k to buy stock, at HK$0.54 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Ka Shui International Holdings

Ka Shui International Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by So Wah Chan was the biggest purchase of Ka Shui International Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.57. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Ka Shui International Holdings share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was So Wah Chan.

The chart below shows insider transactions (by companies and 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!

SEHK:822 Insider Trading Volume June 21st 2022

Ka Shui International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Ka Shui International Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ka Shui International Holdings insiders own about HK$336m worth of shares (which is 66% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Ka Shui International Holdings Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ka Shui International Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Ka Shui International Holdings and we suggest you have a look.

But note: Ka Shui International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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