Trade Alert: The Chairman Of Sky Light Holdings Limited (HKG:3882), Wing Fong Tang, Has Just Spent HK$205k Buying A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Sky Light Holdings Limited (HKG:3882) Chairman, Wing Fong Tang, recently bought HK$205k worth of stock, for HK$0.26 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Sky Light Holdings

Sky Light Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman Wing Fong Tang was not their only acquisition of Sky Light Holdings shares this year. They previously made an even bigger purchase of HK$10m worth of shares at a price of HK$0.25 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.25). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Wing Fong Tang was the only individual insider to buy shares in the last twelve months.

Wing Fong Tang bought a total of 63.10m shares over the year at an average price of HK$0.25. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Sky Light Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Sky Light Holdings insiders own about HK$174m worth of shares (which is 73% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Sky Light Holdings Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Sky Light Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Sky Light Holdings (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

Of course Sky Light Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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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