Kerry Properties Limited (HKG:683) Insiders Increased Their Holdings

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Kerry Properties Limited (HKG:683), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Kerry Properties

Kerry Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman & CEO Khoon Hua Kuok bought HK$7.3m worth of shares at a price of HK$19.73 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$24.50. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Kerry Properties share holders is that an insider was buying at near the current price. Khoon Hua Kuok was the only individual insider to buy shares in the last twelve months.

Khoon Hua Kuok purchased 1.02m shares over the year. The average price per share was HK$19.68. 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!

Kerry Properties 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 Kerry Properties

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of Kerry Properties shares, worth about HK$359m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Kerry Properties Insiders?

It doesn't really mean much that no insider has traded Kerry Properties shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Kerry Properties insiders think the business has merit. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Kerry Properties.

But note: Kerry Properties may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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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