Whilst it may not be a huge deal, we thought it was good to see that Qiang Cui, who is a company insider, recently bought HK$409k worth of stock, for HK$0.11 per share. However, it only increased their shares held by 3.8%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Tesson Holdings
Tesson Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by insider Qiang Cui was not the only time they bought Tesson Holdings shares this year. Earlier in the year, they paid HK$0.043 per share in a HK$3.9m purchase. We do like to see buying, but this purchase was made at well below the current price of HK$0.11. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Qiang Cui purchased 93.90m shares over the year. The average price per share was HK$0.046. 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!
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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Tesson Holdings insiders own about HK$105m worth of shares (which is 66% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Tesson Holdings Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. 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 Tesson 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 Tesson Holdings is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant...
But note: Tesson 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.