Kwong Luen Engineering Holdings Insider Buyers See Boost After Market Cap Rose HK$80m

Last week, Kwong Luen Engineering Holdings Limited (HKG:1413) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 29% last week, resulting in a HK$80m increase in the company's market worth. Put another way, the original HK$10m acquisition is now worth HK$14m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Kwong Luen Engineering Holdings

The Last 12 Months Of Insider Transactions At Kwong Luen Engineering Holdings

The insider Wenkui Ma made the biggest insider purchase in the last 12 months. That single transaction was for HK$5.3m worth of shares at a price of HK$0.27 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.36. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Kwong Luen Engineering Holdings insiders bought shares during the last year, they didn't sell. 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.

Insiders At Kwong Luen Engineering Holdings Have Bought Stock Recently

It's good to see that Kwong Luen Engineering Holdings insiders have made notable investments in the company's shares. Overall, two insiders shelled out HK$10m for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Kwong Luen Engineering Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 13% of Kwong Luen Engineering Holdings shares, worth about HK$46m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Kwong Luen Engineering Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Kwong Luen Engineering Holdings we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 4 warning signs for Kwong Luen Engineering Holdings you should be aware of, and 1 of these is significant.

Of course Kwong Luen Engineering 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.