Have Insiders Been Buying Kader Holdings Company Limited (HKG:180) Shares This Year?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Kader Holdings Company Limited (HKG:180), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for Kader Holdings
Kader Holdings Insider Transactions Over The Last Year
There wasn't any very large single transaction over the last year, but we can still observe some trading.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Kader Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Kader Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 40% of Kader Holdings shares, worth about HK$167m. 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 Kader Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Kader Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Kader Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Be aware that Kader Holdings is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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About SEHK:180
Kader Holdings
An investment holding company, manufactures and trades model trains, and plastic, electronic, and stuffed toys in Hong Kong, Mainland China, North America, Europe, Japan, Singapore, and internationally.
Low with imperfect balance sheet.