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Trade Alert: The Chairman & CEO Of Tian Chang Group Holdings Ltd. (HKG:2182), Tsan Lam Chan, Has Just Spent HK$131k Buying A Few More Shares

Simply Wall St ·  Apr 16, 2022 20:26

Whilst it may not be a huge deal, we thought it was good to see that the Tian Chang Group Holdings Ltd. (HKG:2182) Chairman & CEO, Tsan Lam Chan, recently bought HK$131k worth of stock, for HK$0.38 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Tian Chang Group Holdings

The Last 12 Months Of Insider Transactions At Tian Chang Group Holdings

In fact, the recent purchase by Chairman & CEO Tsan Lam Chan was not their only acquisition of Tian Chang Group Holdings shares this year. They previously made an even bigger purchase of HK$271k worth of shares at a price of HK$0.39 per share. That implies that an insider found the current price of HK$0.40 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Tian Chang Group Holdings share holders is that an insider was buying at near the current price. Tsan Lam Chan was the only individual insider to buy during the last year.

Tsan Lam Chan bought a total of 1.33m shares over the year at an average price of HK$0.39. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:2182 Insider Trading Volume April 17th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Tian Chang Group Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Tian Chang Group Holdings insiders own 74% of the company, currently worth about HK$184m 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 Does This Data Suggest About Tian Chang Group Holdings Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tian Chang Group Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tian Chang Group Holdings. At Simply Wall St, we found 2 warning signs for Tian Chang Group Holdings that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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