Stock Analysis

Hung Fook Tong Group Holdings Limited (HKG:1446) Insiders Increased Their Holdings

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SEHK:1446
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Hung Fook Tong Group Holdings Limited (HKG:1446).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Hung Fook Tong Group Holdings

The Last 12 Months Of Insider Transactions At Hung Fook Tong Group Holdings

While no particular insider transaction stood out, we can still look at the overall trading.

Wing Fu Szeto bought a total of 1.00m shares over the year at an average price of HK$0.35. 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!

insider-trading-volume
SEHK:1446 Insider Trading Volume December 10th 2020

Hung Fook Tong Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Hung Fook Tong Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Hung Fook Tong Group Holdings insiders own 51% of the company, worth about HK$145m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Hung Fook Tong Group Holdings Tell Us?

The fact that there have been no Hung Fook Tong Group Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Hung Fook Tong Group Holdings insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Hung Fook Tong Group Holdings.

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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