Even if it's not a huge purchase, we think it was good to see that Tsan Lam Chan, the Chairman & CEO of Tian Chang Group Holdings Ltd. (HKG:2182) recently shelled out HK$131k to buy stock, at HK$0.38 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.
Tian Chang Group Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Tsan Lam Chan was not their only acquisition of Tian Chang Group Holdings shares this year. They previously made an even bigger purchase of HK$271k worth of shares at a price of HK$0.39 per share. That implies that an insider found the current price of HK$0.40 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Tian Chang Group Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Tsan Lam Chan.
Tsan Lam Chan bought a total of 1.33m shares over the year at an average price of HK$0.39. 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!
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 Tian Chang Group 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. Tian Chang Group Holdings insiders own 74% of the company, currently worth about HK$184m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Tian Chang Group Holdings Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Tian Chang Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Tian Chang Group Holdings has 2 warning signs and it would be unwise to ignore them.
But note: Tian Chang Group 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. 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.