Michael Webb of Tungtex (Holdings) Company Limited (HKG:518) Just Spent HK$1.6m On Shares

Investors who take an interest in Tungtex (Holdings) Company Limited (HKG:518) should definitely note that insider Michael Webb recently paid HK$0.67 per share to buy HK$1.6m worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 11%.

View our latest analysis for Tungtex (Holdings)

Tungtex (Holdings) Insider Transactions Over The Last Year

Notably, that recent purchase by Michael Webb is the biggest insider purchase of Tungtex (Holdings) shares that we've seen in the last year. That implies that an insider found the current price of HK$0.67 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Tungtex (Holdings) insider decided to buy shares at close to current prices. Michael Webb was the only individual insider to buy during the last year. We note that Michael Webb was also the biggest seller.

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. 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 Tungtex (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. It's great to see that Tungtex (Holdings) insiders own 40% of the company, worth about HK$122m. 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 Tungtex (Holdings) Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tungtex (Holdings). One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tungtex (Holdings). Every company has risks, and we've spotted 2 warning signs for Tungtex (Holdings) (of which 1 is concerning!) you should know about.

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.

If you’re looking to trade Tungtex (Holdings), open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.