Non-Executive Director Wa Fan Hoi Just Bought A Handful Of Shares In Powerlong Real Estate Holdings Limited (HKG:1238)

Powerlong Real Estate Holdings Limited (HKG:1238) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Wa Fan Hoi, recently bought a whopping HK$6.5m worth of stock, at a price of HK$5.30. While that only increased their holding size by 0.5%, it is still a big swing by our standards.

View our latest analysis for Powerlong Real Estate Holdings

Powerlong Real Estate Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Wa Fan Hoi is the biggest insider purchase of Powerlong Real Estate Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$5.24). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Powerlong Real Estate Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Powerlong Real Estate 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 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Powerlong Real Estate Holdings insiders own 65% of the company, currently worth about HK$14b 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 Powerlong Real Estate Holdings Tell Us?

It is good 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 Powerlong Real Estate Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Powerlong Real Estate Holdings (including 1 which is significant).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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