Executive Chairman Wing Mau Hui Just Bought 5.0% More Shares In Shimao Group Holdings Limited (HKG:813)

By
Simply Wall St
Published
November 10, 2021
SEHK:813
Source: Shutterstock

Shimao Group Holdings Limited (HKG:813) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Wing Mau Hui, recently bought a whopping HK$1.6b worth of stock, at a price of HK$13.95. While that only increased their holding size by 5.0%, it is still a big swing by our standards.

See our latest analysis for Shimao Group Holdings

Shimao Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Wing Mau Hui was the biggest purchase of Shimao Group Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$10.50). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Wing Mau Hui was the only individual insider to buy during the last year.

Wing Mau Hui bought a total of 123.60m shares over the year at an average price of HK$14.28. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
SEHK:813 Insider Trading Volume November 10th 2021

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Shimao Group Holdings insiders own 63% of the company, currently worth about HK$24b 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.

So What Does This Data Suggest About Shimao Group Holdings Insiders?

The recent insider purchase is heartening. 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 Shimao Group Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shimao Group Holdings. At Simply Wall St, we've found that Shimao Group Holdings has 4 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course Shimao Group 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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