Bullish King International Investment Insiders Loaded Up On HK$62.2m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in King International Investment Limited (HKG:928). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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 King International Investment

King International Investment Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Mengyao Wang for HK$50m worth of shares, at about HK$0.11 per share. That means that even when the share price was higher than HK$0.078 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays 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.

Over the last year, we can see that insiders have bought 824.56m shares worth HK$62m. But they sold 567.56m shares for HK$54m. Overall, King International Investment insiders were net buyers during the last year. The average buy price was around HK$0.075. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

King International Investment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

King International Investment Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at King International Investment, over the last three months. insider Yan Wei spent HK$13m on stock. But we did see insider Chunyan Zhou sell shares worth HK$4.1m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of King International Investment

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that King International Investment insiders own 65% of the company, worth about HK$95m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The King International Investment Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest King International Investment insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. At Simply Wall St, we found 2 warning signs for King International Investment that deserve your attention before buying any shares.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.