Stock Analysis

K2 F&B Holdings Limited's (HKG:2108) recent HK$24m market cap decline means a loss of S$44k for insiders who bought this year

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Insiders who acquired S$491k worth of K2 F&B Holdings Limited's (HKG:2108) stock at an average price of S$0.24 in the past 12 months may be dismayed by the recent 12% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth S$446k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for K2 F&B Holdings

The Last 12 Months Of Insider Transactions At K2 F&B Holdings

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

Soon Huat Toh bought 2.03m shares over the last 12 months at an average price of HK$0.24. 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!

SEHK:2108 Insider Trading Volume May 12th 2022

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

Insider Ownership of K2 F&B Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that K2 F&B Holdings insiders own 81% of the company, worth about HK$143m. 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 Does This Data Suggest About K2 F&B Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, K2 F&B Holdings insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for K2 F&B Holdings you should be aware of, and 2 of these are a bit unpleasant.

Of course K2 F&B Holdings 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, but not derivative transactions.

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