Insider Buying: The Times Neighborhood Holdings Limited (HKG:9928) Independent Non- Executive Director Just Bought CN¥382k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Kong Tin Wong, the Independent Non- Executive Director of Times Neighborhood Holdings Limited (HKG:9928) recently shelled out HK$382k to buy stock, at HK$7.63 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.

See our latest analysis for Times Neighborhood Holdings

The Last 12 Months Of Insider Transactions At Times Neighborhood Holdings

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Xihong Bai bought HK$6.1m worth of shares at a price of HK$12.24 per share. That means that an insider was happy to buy shares at above the current price of HK$7.77. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Times Neighborhood Holdings insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$8.65. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Insider Ownership of Times Neighborhood 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Times Neighborhood Holdings insiders own about HK$167m worth of shares. That equates to 2.2% of the company. 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 Times Neighborhood Holdings Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Times Neighborhood Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. You'd be interested to know, that we found 1 warning sign for Times Neighborhood Holdings and we suggest you have a look.

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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