Chun Hoo Chan Just Bought 3.0% More Shares In Playmates Toys Limited (HKG:869)

Whilst it may not be a huge deal, we thought it was good to see that Chun Hoo Chan, who is a company insider, recently bought HK$120k worth of stock, for HK$0.30 per share. Although the purchase is not a big one, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.

View our latest analysis for Playmates Toys

Playmates Toys Insider Transactions Over The Last Year

Notably, that recent purchase by insider Chun Hoo Chan was not the only time they bought Playmates Toys shares this year. Earlier in the year, they paid HK$0.23 per share in a HK$558k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.34. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Playmates Toys insiders bought shares during the last year, they didn't sell. 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).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Playmates Toys insiders have about 1.7% of the stock, worth approximately HK$5.9m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Playmates Toys Tell Us?

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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Playmates Toys insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Playmates Toys. To that end, you should learn about the 3 warning signs we've spotted with Playmates Toys (including 1 which shouldn't be ignored).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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