Whilst it may not be a huge deal, we thought it was good to see that the Build King Holdings Limited (HKG:240) Chairman, Wei Peu Zen, recently bought HK$657k worth of stock, for HK$0.94 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Build King Holdings Insider Transactions Over The Last Year
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$0.96. 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. 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. Happily, the Build King Holdings insider decided to buy shares at close to current prices. Wei Peu Zen was the only individual insider to buy during the last year.
Wei Peu Zen bought a total of 1.00m shares over the year at an average price of HK$0.93. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. 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 9.9% of the company, worth about HK$117m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Build King Holdings Insiders?
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! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Build King Holdings. Case in point: We've spotted 2 warning signs for Build King Holdings you should be aware of, and 1 of these makes us a bit uncomfortable.
Of course Build King 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.
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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.
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