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Insider Buying: The Chi Ho Development Holdings Limited (HKG:8423) Executive Director Just Bought HK$95k Worth Of Shares

Simply Wall St ·  Oct 6, 2022 18:15

Whilst it may not be a huge deal, we thought it was good to see that the Chi Ho Development Holdings Limited (HKG:8423) Executive Director, Chi Kwan Ho, recently bought HK$95k worth of stock, for HK$0.057 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Chi Ho Development Holdings

The Last 12 Months Of Insider Transactions At Chi Ho Development Holdings

Notably, that recent purchase by Chi Kwan Ho is the biggest insider purchase of Chi Ho Development Holdings shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$0.066. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

insider-trading-volumeSEHK:8423 Insider Trading Volume October 6th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Chi Ho Development Holdings insiders own 67% of the company, worth about HK$35m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Chi Ho Development Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Chi Ho Development Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chi Ho Development Holdings. Our analysis shows 4 warning signs for Chi Ho Development Holdings (3 make us uncomfortable!) and we strongly recommend you look at these before investing.

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, but not derivative transactions.

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.

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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