Insider Buys Additional CN¥4.7m In Powerlong Real Estate Holdings Stock

Powerlong Real Estate Holdings Limited (HKG:1238) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board, Kin Hong Hoi, recently bought a whopping HK$4.7m worth of stock, at a price of HK$0.67. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.4%.

View our latest analysis for Powerlong Real Estate Holdings

Powerlong Real Estate Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Kin Hong Hoi was the biggest purchase of Powerlong Real Estate Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$0.59. 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kin Hong Hoi was the only individual insider to buy during the last year. Notably Kin Hong Hoi was also the biggest seller.

Kin Hong Hoi bought 15.31m shares over the last 12 months at an average price of HK$0.53. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Powerlong Real Estate Holdings

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. Powerlong Real Estate Holdings insiders own about HK$1.6b worth of shares (which is 66% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Powerlong Real Estate 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. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Powerlong Real Estate Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Powerlong Real Estate Holdings is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

Of course Powerlong Real Estate Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.