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Trade Alert: The Executive Chairman & CEO Of Century City International Holdings Limited (HKG:355), Yuk Sui Lo, Has Just Spent HK$5.0m Buying A Few More Shares

Simply Wall St ·  Jun 29, 2022 18:30

Century City International Holdings Limited (HKG:355) shareholders (or potential shareholders) will be happy to see that the Executive Chairman & CEO, Yuk Sui Lo, recently bought a whopping HK$5.0m worth of stock, at a price of HK$0.30. While that only increased their holding size by 0.8%, it is still a big swing by our standards.

Check out our latest analysis for Century City International Holdings

Century City International Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman & CEO Yuk Sui Lo was not their only acquisition of Century City International Holdings shares this year. They previously made an even bigger purchase of HK$43m worth of shares at a price of HK$0.30 per share. That implies that an insider found the current price of HK$0.32 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Century City International Holdings share holders is that an insider was buying at near the current price. Yuk Sui Lo was the only individual insider to buy during the last year.

Yuk Sui Lo bought a total of 160.75m shares over the year at an average price of HK$0.30. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:355 Insider Trading Volume June 29th 2022

Century City International Holdings 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.

Does Century City International Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Century City International Holdings insiders own 65% of the company, currently worth about HK$648m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Century City International Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Century City International Holdings. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Century City International Holdings is showing 3 warning signs in our investment analysis, and 2 of those don't sit too well with us...

But note: Century City 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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