Founder & Chairman Kin Yip Wong Just Bought 5.4% More Shares In Midland Holdings Limited (HKG:1200)

Midland Holdings Limited (HKG:1200) shareholders (or potential shareholders) will be happy to see that the Founder & Chairman, Kin Yip Wong, recently bought a whopping HK$10m worth of stock, at a price of HK$0.75. 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 5.4%.

View our latest analysis for Midland Holdings

Midland Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Kin Yip Wong was the biggest purchase of Midland Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.77 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Kin Yip Wong was the only individual insider to buy shares in the last twelve months.

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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Midland Holdings insiders own 44% of the company, currently worth about HK$246m based on the recent share price. 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 Midland Holdings Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Midland Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Midland Holdings. Every company has risks, and we've spotted 2 warning signs for Midland Holdings you should know about.

Of course Midland 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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