Those following along with Lonking Holdings Limited (HKG:3339) will no doubt be intrigued by the recent purchase of shares by Ngan Ying Ngai, Founder & Non Executive Vice Chairman of the company, who spent a stonking HK$5.7m on stock at an average price of HK$1.20. While that only increased their holding size by 0.2%, it is still a big swing by our standards.
Check out our latest analysis for Lonking Holdings
Lonking Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Ngan Ying Ngai is the biggest insider purchase of Lonking Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$1.25. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Lonking Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Ngan Ying Ngai.
Ngan Ying Ngai bought a total of 9.25m shares over the year at an average price of HK$1.20. 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. Lonking Holdings insiders own about HK$3.0b worth of shares (which is 56% 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 Lonking Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Lonking Holdings. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Lonking Holdings has 2 warning signs we think you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.