Trade Alert: Chi Yuen Lau At Luxey International (Holdings) Limited (HKG:8041), Has Just Spent HK$94k Buying A Small Number of Shares

By
Simply Wall St
Published
January 24, 2022
SEHK:8041
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Chi Yuen Lau, a Luxey International (Holdings) Limited (HKG:8041) insider, recently shelled out HK$94k to buy stock, at HK$0.43 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 Luxey International (Holdings)

Luxey International (Holdings) Insider Transactions Over The Last Year

Notably, that recent purchase by Chi Yuen Lau is the biggest insider purchase of Luxey International (Holdings) shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.42. 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Chi Yuen Lau.

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!

insider-trading-volume
SEHK:8041 Insider Trading Volume January 24th 2022

Luxey International (Holdings) is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Luxey International (Holdings)

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. It's great to see that Luxey International (Holdings) insiders own 52% of the company, worth about HK$175m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Luxey International (Holdings) 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Luxey International (Holdings). One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Luxey International (Holdings). At Simply Wall St, we found 1 warning sign for Luxey International (Holdings) that deserve your attention before buying any shares.

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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