Wai Sheun Or Spends HK$1.1m On Kowloon Development Stock

Investors who take an interest in Kowloon Development Company Limited (HKG:34) should definitely note that the Chairman & CEO, Wai Sheun Or, recently paid HK$7.00 per share to buy HK$1.1m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Kowloon Development

Kowloon Development Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman & CEO Wai Sheun Or was not the only time they bought Kowloon Development shares this year. They previously made an even bigger purchase of HK$4.0m worth of shares at a price of HK$8.00 per share. That means that an insider was happy to buy shares at above the current price of HK$6.88. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Wai Sheun Or was the only individual insider to buy during the last year.

Wai Sheun Or bought 11.65m shares over the last 12 months at an average price of HK$8.43. 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!

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

Does Kowloon Development Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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 Kowloon Development insiders own 72% of the company, worth about HK$5.8b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Kowloon Development Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kowloon Development. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kowloon Development. Case in point: We've spotted 4 warning signs for Kowloon Development you should be aware of, and 2 of these don't sit too well with us.

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.