Whilst it may not be a huge deal, we thought it was good to see that the In Construction Holdings Limited (HKG:1500) Independent Non-Executive Director, Chi Man Yau, recently bought HK$92k worth of stock, for HK$0.22 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 10%.
In Construction Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Director Chi Man Yau was not their only acquisition of In Construction Holdings shares this year. Earlier in the year, they paid HK$0.25 per share in a HK$253k purchase. That means that an insider was happy to buy shares at above the current price of HK$0.24. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Chi Man Yau was the only individual insider to buy shares in the last twelve months.
Chi Man Yau purchased 1.44m shares over the year. The average price per share was HK$0.24. 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!
In Construction Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by 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. In Construction Holdings insiders own about HK$151m worth of shares (which is 74% of the company). 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 In Construction Holdings Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest In Construction Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. To that end, you should learn about the 4 warning signs we've spotted with In Construction Holdings (including 1 which shouldn't be ignored).
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.