Skyworth Group CEO & Executive Director Acquires 1.1% More Stock

Potential Skyworth Group Limited (HKG:751) shareholders may wish to note that the CEO & Executive Director, Chi Shi, recently bought HK$1.1m worth of stock, paying HK$2.84 for each share. Although the purchase only increased their holding by 1.1%, it is still a solid purchase in our view.

Check out our latest analysis for Skyworth Group

Skyworth Group Insider Transactions Over The Last Year

Notably, that recent purchase by CEO & Executive Director Chi Shi was not the only time they bought Skyworth Group shares this year. They previously made an even bigger purchase of HK$6.3m worth of shares at a price of HK$2.88 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$2.96. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Skyworth Group insider decided to buy shares at close to current prices. Chi Shi was the only individual insider to buy during the last year.

Chi Shi bought 15.70m shares over the last 12 months at an average price of HK$2.97. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Skyworth Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Skyworth Group insiders own 57% of the company, currently worth about HK$3.8b based on the recent share price. 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 Do The Skyworth Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Skyworth Group. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Skyworth Group and we suggest you have a look.

Of course Skyworth Group 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 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.

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