The Executive Chairman of Shimao Group Holdings Limited (HKG:813), Wing Mau Hui, Just Bought A Few More Shares

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$23m worth of stock, at a price of HK$23.08. While that only increased their holding size by 0.04%, it is still a big swing by our standards.

View 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. That means that an insider was happy to buy shares at above the current price of HK$23.05. 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. We always take careful note of the price insiders pay when purchasing 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.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Shimao Group 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Shimao Group Holdings insiders own 65% of the company, worth about HK$53b. 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 Do The Shimao Group Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Shimao Group Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Shimao Group Holdings has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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