Cheuk Yi Yu Just Bought A Sprinkling of Shares In Lai Sun Development Company Limited (HKG:488)

Investors who take an interest in Lai Sun Development Company Limited (HKG:488) should definitely note that insider Cheuk Yi Yu recently paid HK$5.24 per share to buy HK$2.4m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Lai Sun Development

The Last 12 Months Of Insider Transactions At Lai Sun Development

In the last twelve months, the biggest single sale by an insider was when the Executive Deputy Chairman of the Board, Fook Aun Chew, sold HK$4.8m worth of shares at a price of HK$8.18 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$5.95. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Fook Aun Chew.

In the last twelve months insiders purchased 1.76m shares for HK$13m. But insiders sold 1.00m shares worth HK$8.1m. In total, Lai Sun Development insiders bought more than they sold over the last year. Their average price was about HK$7.15. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Lai Sun Development insiders own 22% of the company, worth about HK$789m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Lai Sun Development Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lai Sun Development. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Lai Sun Development has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

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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