Independent Non- Executive Director Jiangtian Huang Just Bought 100% More Shares In Times Neighborhood Holdings Limited (HKG:9928)

Even if it's not a huge purchase, we think it was good to see that Jiangtian Huang, the Independent Non- Executive Director of Times Neighborhood Holdings Limited (HKG:9928) recently shelled out HK$599k to buy stock, at HK$5.98 per share. While that isn't the hugest buy, it actually boosted their shareholding by 100%, which is good to see.

View our latest analysis for Times Neighborhood Holdings

The Last 12 Months Of Insider Transactions At Times Neighborhood Holdings

The Chairman of the Board Xihong Bai made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.1m worth of shares at a price of HK$12.24 each. That means that an insider was happy to buy shares at above the current price of HK$6.17. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Times Neighborhood Holdings insiders bought shares during the last year, they didn't sell. The average buy price was around HK$8.48. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Times Neighborhood 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

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. Insiders own 2.2% of Times Neighborhood Holdings shares, worth about HK$136m. 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 Do The Times Neighborhood Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Times Neighborhood Holdings. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Times Neighborhood Holdings and understanding these should be part of your investment process.

But note: Times Neighborhood Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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