The Executive Chairman of Texwinca Holdings Limited (HKG:321), Bun Chak Poon, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Bun Chak Poon, the Executive Chairman of Texwinca Holdings Limited (HKG:321) recently shelled out HK$87k to buy stock, at HK$1.73 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.

Check out our latest analysis for Texwinca Holdings

Texwinca Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Bun Chak Poon was not their only acquisition of Texwinca Holdings shares this year. Earlier in the year, they paid HK$1.15 per share in a HK$4.6m purchase. Even though the purchase was made at a significantly lower price than the recent price (HK$1.71), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Bun Chak Poon purchased 24.42m shares over the year. The average price per share was HK$1.18. 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!

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

Does Texwinca 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. We usually like to see fairly high levels of insider ownership. Texwinca Holdings insiders own about HK$1.2b worth of shares (which is 51% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Texwinca Holdings Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Texwinca Holdings. 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. Every company has risks, and we've spotted 3 warning signs for Texwinca Holdings (of which 1 is a bit concerning!) you should know about.

But note: Texwinca 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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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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