Stock Analysis

Insiders sitting comfortably on a HK$108m profit after buying Golden Ponder Holdings Limited (HKG:1783) stock worth HK$173m last year

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Insiders who purchased Golden Ponder Holdings Limited (HKG:1783) shares in the past 12 months are unlikely to be deeply impacted by the stock's 22% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of HK$173m is now worth HK$281m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Golden Ponder Holdings

Golden Ponder Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Chun Sing Kwok for HK$101m worth of shares, at about HK$0.28 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.47. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 591.89m shares worth HK$173m. On the other hand they divested 21.39m shares, for HK$11m. In total, Golden Ponder Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:1783 Insider Trading Volume March 15th 2023

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Insiders At Golden Ponder Holdings Have Bought Stock Recently

Over the last quarter, Golden Ponder Holdings insiders have spent a meaningful amount on shares. Specifically, Executive Chairman Chun Sing Kwok bought HK$23m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of Golden Ponder 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. We usually like to see fairly high levels of insider ownership. Golden Ponder Holdings insiders own 71% of the company, currently worth about HK$323m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Golden Ponder Holdings Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Golden Ponder Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Golden Ponder Holdings. At Simply Wall St, we've found that Golden Ponder Holdings has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

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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