Whilst it may not be a huge deal, we thought it was good to see that the Ngai Hing Hong Company Limited (HKG:1047) Co-Founder & Executive Chairman of the Board, Sai Chung Hui, recently bought HK$202k worth of stock, for HK$0.50 per share. Although the purchase is not a big one, increasing their shareholding by only 2.3%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Ngai Hing Hong
In fact, the recent purchase by Co-Founder & Executive Chairman of the Board Sai Chung Hui was not their only acquisition of Ngai Hing Hong shares this year. Earlier in the year, they paid HK$0.48 per share in a HK$335k purchase. That implies that an insider found the current price of HK$0.49 per share to be enticing. 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. 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. The good news for Ngai Hing Hong share holders is that an insider was buying at near the current price. Sai Chung Hui was the only individual insider to buy during the last year.
Sai Chung Hui bought a total of 1.33m shares over the year at an average price of HK$0.47. 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!
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.
Insider Ownership of Ngai Hing Hong
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. From our data, it seems that Ngai Hing Hong insiders own 10% of the company, worth about HK$19m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Ngai Hing Hong Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Ngai Hing Hong insiders are well aligned, and that they may think the share price is too low. 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 Ngai Hing Hong.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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