Yau Lung Ho Buys Handful Of Shares In Melco International Development

Those following along with Melco International Development Limited (HKG:200) will no doubt be intrigued by the recent purchase of shares by Yau Lung Ho, Executive Chairman & CEO of the company, who spent a stonking HK$5.5m on stock at an average price of HK$5.18. While that only increased their holding size by 0.1%, it is still a big swing by our standards.

Check out our latest analysis for Melco International Development

Melco International Development Insider Transactions Over The Last Year

Notably, that recent purchase by Yau Lung Ho is the biggest insider purchase of Melco International Development shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$5.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Che Yin Tsui divested 1.00m shares over the last 12 months at an average price of HK$6.18. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Melco International Development insiders own 55% of the company, currently worth about HK$4.8b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Melco International Development Insider Transactions Indicate?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Melco International Development insiders are reasonably well aligned, and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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 of direct interests only, but not derivative transactions or indirect interests.

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

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.