Build King Holdings Executive Chairman Acquires 2.1% More Stock

Potential Build King Holdings Limited (HKG:240) shareholders may wish to note that the Executive Chairman, Wei Peu Zen, recently bought HK$3.4m worth of stock, paying HK$1.35 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.1%.

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The Last 12 Months Of Insider Transactions At Build King Holdings

Notably, that recent purchase by Wei Peu Zen is the biggest insider purchase of Build King Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$1.36. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Build King Holdings share holders is that an insider was buying at near the current price. Wei Peu Zen was the only individual insider to buy during the last year.

Wei Peu Zen bought 4.05m shares over the last 12 months at an average price of HK$1.26. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Build King Holdings

Build King Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Build King Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Build King Holdings insiders own 10% of the company, worth about HK$175m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Build King Holdings Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Build King Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Build King Holdings has 1 warning sign and it would be unwise to ignore it.

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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.