Chor Kit Cheng Is The Founder of Kin Yat Holdings Limited (HKG:638) And Just Spent HK$122k On Shares

Whilst it may not be a huge deal, we thought it was good to see that the Kin Yat Holdings Limited (HKG:638) Founder, Chor Kit Cheng, recently bought HK$122k worth of stock, for HK$0.82 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Kin Yat Holdings

The Last 12 Months Of Insider Transactions At Kin Yat Holdings

In fact, the recent purchase by Founder Chor Kit Cheng was not their only acquisition of Kin Yat Holdings shares this year. Earlier in the year, they paid HK$0.84 per share in a HK$5.2m purchase. That means that an insider was happy to buy shares at around the current price of HK$0.85. 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 Kin Yat Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Chor Kit Cheng.

Chor Kit Cheng purchased 6.33m shares over the year. The average price per share was HK$0.84. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership of Kin Yat Holdings

Many investors like to check how much of a company is owned by 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 Kin Yat Holdings insiders own 69% of the company, worth about HK$244m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Kin Yat Holdings Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Kin Yat Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! 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 4 warning signs for Kin Yat Holdings 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.

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