Insider Buying: The Kato (Hong Kong) Holdings Limited (HKG:2189) CEO & Executive Chairman of the Board Just Bought HK$336k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Shi Shing Ngai, the CEO & Executive Chairman of the Board of Kato (Hong Kong) Holdings Limited (HKG:2189) recently shelled out HK$336k to buy stock, at HK$0.56 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Kato (Hong Kong) Holdings

The Last 12 Months Of Insider Transactions At Kato (Hong Kong) Holdings

Notably, that recent purchase by Shi Shing Ngai is the biggest insider purchase of Kato (Hong Kong) Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$0.63. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Kato (Hong Kong) Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Shi Shing Ngai.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does Kato (Hong Kong) Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Kato (Hong Kong) Holdings insiders own 62% of the company, worth about HK$400m. 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 Kato (Hong Kong) Holdings Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Kato (Hong Kong) Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kato (Hong Kong) Holdings. While conducting our analysis, we found that Kato (Hong Kong) Holdings has 2 warning signs and it would be unwise to ignore these.

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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