Despite Recent Gains, Texwinca Holdings Insiders Are Still Down HK$333k

Insiders who purchased HK$1.12m worth of Texwinca Holdings Limited (HKG:321) shares over the past year recouped some of their losses after price gained 15% last week. However, total losses seen by insiders are still HK$333k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Texwinca Holdings

The Last 12 Months Of Insider Transactions At Texwinca Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Director Mo Ping Ng for HK$660k worth of shares, at about HK$2.20 per share. That means that even when the share price was higher than HK$0.99 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Texwinca Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about HK$1.41 on average. These transactions suggest that insiders have considered the current price attractive. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Texwinca Holdings Insiders Bought Stock Recently

Over the last quarter, Texwinca Holdings insiders have spent a meaningful amount on shares. We can see that CEO & Executive Director Lai Hong Ho paid HK$465k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Texwinca 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Texwinca Holdings insiders own 51% of the company, worth about HK$693m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Texwinca Holdings Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Texwinca Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Texwinca Holdings (of which 1 is concerning!) you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.