Chiu Fung Ho Buys Handful Of Shares In Shun Tak Holdings

Whilst it may not be a huge deal, we thought it was good to see that the Shun Tak Holdings Limited (HKG:242) CFO, Deputy MD & Executive Director, Chiu Fung Ho, recently bought HK$583k worth of stock, for HK$1.16 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 Shun Tak Holdings

The Last 12 Months Of Insider Transactions At Shun Tak Holdings

Over the last year, we can see that the biggest insider purchase was by Group Executive Chairman & MD Chiu Ho for HK$2.1m worth of shares, at about HK$1.03 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$1.12. Of course they may have changed their mind. But this suggests they are optimistic. 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 Shun Tak Holdings insiders decided to buy shares at close to current prices.

In the last twelve months Shun Tak Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Shun Tak Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Shun Tak Holdings insiders own 28% of the company, worth about HK$950m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Shun Tak Holdings Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Shun Tak Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shun Tak Holdings. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Shun Tak Holdings.

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.