Executive Chairman & CEO Kang Kwong Wong Just Bought 1.8% More Shares In Lap Kei Engineering (Holdings) Limited (HKG:1690)

Simply Wall St
May 20, 2021
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Kang Kwong Wong, the Executive Chairman & CEO of Lap Kei Engineering (Holdings) Limited (HKG:1690) recently shelled out HK$163k to buy stock, at HK$0.064 per share. Although the purchase is not a big one, increasing their shareholding by only 1.8%, it can be interpreted as a good sign.

See our latest analysis for Lap Kei Engineering (Holdings)

Lap Kei Engineering (Holdings) Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman & CEO Kang Kwong Wong was not the only time they bought Lap Kei Engineering (Holdings) shares this year. Earlier in the year, they paid HK$0.062 per share in a HK$894k purchase. That means that an insider was happy to buy shares at around the current price of HK$0.066. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Lap Kei Engineering (Holdings) insider decided to buy shares at close to current prices. Kang Kwong Wong was the only individual insider to buy during the last year.

Kang Kwong Wong purchased 40.11m shares over the year. The average price per share was HK$0.059. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:1690 Insider Trading Volume May 21st 2021

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 Lap Kei Engineering (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. We usually like to see fairly high levels of insider ownership. Our data indicates that Lap Kei Engineering (Holdings) insiders own about HK$9.9m worth of shares (which is 9.7% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Lap Kei Engineering (Holdings) Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Lap Kei Engineering (Holdings) insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Lap Kei Engineering (Holdings) you should be aware of, and 1 of them is significant.

Of course Lap Kei 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.

If you're looking for stocks to buy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.