Insider Buying: The Victory Securities (Holdings) Company Limited (HKG:8540) CEO & Executive Director Just Bought 110% More Shares

Potential Victory Securities (Holdings) Company Limited (HKG:8540) shareholders may wish to note that the CEO & Executive Director, Kuen Kou, recently bought HK$2.9m worth of stock, paying HK$1.26 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 110%, potentially signalling some real optimism.

See our latest analysis for Victory Securities (Holdings)

The Last 12 Months Of Insider Transactions At Victory Securities (Holdings)

In fact, the recent purchase by Kuen Kou was the biggest purchase of Victory Securities (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 around the current price of HK$1.27. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Kuen Kou was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Victory Securities (Holdings) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Victory Securities (Holdings) Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Victory Securities (Holdings) shares, worth about HK$30m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Victory Securities (Holdings) Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Victory Securities (Holdings) shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Victory Securities (Holdings). For example, Victory Securities (Holdings) has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

But note: Victory Securities (Holdings) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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