Trade Alert: The Independent Non-Executive Director Of Clifford Modern Living Holdings Limited (HKG:3686), Cham Ho, Has Just Spent CN¥100k Buying 67% More Shares

Even if it's not a huge purchase, we think it was good to see that Cham Ho, the Independent Non-Executive Director of Clifford Modern Living Holdings Limited (HKG:3686) recently shelled out HK$100k to buy stock, at HK$0.50 per share. While that isn't the hugest buy, it actually boosted their shareholding by 67%, which is good to see.

Check out our latest analysis for Clifford Modern Living Holdings

The Last 12 Months Of Insider Transactions At Clifford Modern Living Holdings

In fact, the recent purchase by Independent Non-Executive Director Cham Ho was not their only trade of Clifford Modern Living Holdings shares this year. They previously made a sale of -HK$130k worth of shares at a price of HK$0.65 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.49). So it may not tell us anything about how insiders feel about the current share price.

Cham Ho bought a total of 700.00k shares over the year at an average price of HK$0.52. 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!

Clifford Modern Living Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Clifford Modern Living Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Clifford Modern Living Holdings insiders own 73% of the company, worth about HK$367m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Clifford Modern Living Holdings Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Clifford Modern Living Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. You'd be interested to know, that we found 2 warning signs for Clifford Modern Living Holdings and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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. 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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