Lap Kei Engineering (Holdings) Insiders May Regret Not Buying More, Market Cap Hits HK$124m

Lap Kei Engineering (Holdings) Limited (HKG:1690) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a HK$12m rise in the company's market capitalisation, translating to a gain of 32% on their initial investment. As a result, their original purchase of HK$1.44m worth of stock is now worth HK$1.90m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Lap Kei Engineering (Holdings)

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

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & CEO Kang Kwong Wong for HK$618k worth of shares, at about HK$0.06 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.083), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Kang Kwong Wong bought 22.94m shares over the last 12 months at an average price of HK$0.063. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Lap Kei Engineering (Holdings) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 26% of Lap Kei Engineering (Holdings) shares, worth about HK$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Lap Kei Engineering (Holdings) Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Lap Kei Engineering (Holdings) shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Lap Kei Engineering (Holdings) and their transactions don't cause us concern. 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. In terms of investment risks, we've identified 3 warning signs with Lap Kei Engineering (Holdings) and understanding these should be part of your investment process.

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 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.