Kwung's Holdings Limited (HKG:1925) shareholders (or potential shareholders) will be happy to see that the Executive Chairman & CEO, Jianxin Jin, recently bought a whopping HK$20m worth of stock, at a price of HK$1.90. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.6%.
View our latest analysis for Kwung's Holdings
The Last 12 Months Of Insider Transactions At Kwung's Holdings
In fact, the recent purchase by Jianxin Jin was the biggest purchase of Kwung's Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$1.74 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Jianxin Jin was the only individual insider to buy shares in the last twelve months.
Jianxin Jin bought a total of 11.88m shares over the year at an average price of HK$1.85. 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!
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. Kwung's Holdings insiders own about HK$399m worth of shares (which is 57% 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.
What Might The Insider Transactions At Kwung's Holdings Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kwung's Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kwung's Holdings. While conducting our analysis, we found that Kwung's Holdings has 2 warning signs and it would be unwise to ignore these.
Of course Kwung's Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.