Trade Alert: The Chairman of the Board Of Sunwah Kingsway Capital Holdings Limited (HKG:188), Koon Shum Choi, Has Just Spent HK$1.8m Buying 2.4% More Shares

Potential Sunwah Kingsway Capital Holdings Limited (HKG:188) shareholders may wish to note that the Chairman of the Board, Koon Shum Choi, recently bought HK$1.8m worth of stock, paying HK$0.40 for each share. Although the purchase only increased their holding by 2.4%, it is still a solid purchase in our view.

View our latest analysis for Sunwah Kingsway Capital Holdings

The Last 12 Months Of Insider Transactions At Sunwah Kingsway Capital Holdings

In fact, the recent purchase by Koon Shum Choi was the biggest purchase of Sunwah Kingsway Capital Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$0.39. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Sunwah Kingsway Capital Holdings insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$0.48. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Sunwah Kingsway Capital Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Sunwah Kingsway Capital Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sunwah Kingsway Capital Holdings insiders own 31% of the company, worth about HK$85m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Sunwah Kingsway Capital Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Sunwah Kingsway Capital Holdings insiders are well aligned, and that they may think the share price is too low. 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. When we did our research, we found 4 warning signs for Sunwah Kingsway Capital Holdings (1 is a bit concerning!) that we believe deserve your full attention.

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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