Even if it's not a huge purchase, we think it was good to see that Kam Chu Foo, the Founder of Soundwill Holdings Limited (HKG:878) recently shelled out HK$683k to buy stock, at HK$9.75 per share. That might not be a big purchase but it only increased their holding by 0.03%, and could be interpreted as a good sign.
Check out our latest analysis for Soundwill Holdings
The Last 12 Months Of Insider Transactions At Soundwill Holdings
Notably, that recent purchase by Founder Kam Chu Foo was not the only time they bought Soundwill Holdings shares this year. They previously made an even bigger purchase of HK$1.4m worth of shares at a price of HK$11.12 per share. That means that an insider was happy to buy shares at above the current price of HK$9.75. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kam Chu Foo was the only individual insider to buy shares in the last twelve months.
Kam Chu Foo bought a total of 933k shares over the year at an average price of HK$10.70. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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. Soundwill Holdings insiders own 74% of the company, currently worth about HK$2.0b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Soundwill Holdings Insiders?
It is good 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 Soundwill Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Along with insider transactions, I recommend checking if Soundwill Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Soundwill Holdings 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.