Chairman & CEO of Symphony Holdings Tun Nei Cheng Buys More Stock

Potential Symphony Holdings Limited (HKG:1223) shareholders may wish to note that the Chairman & CEO, Tun Nei Cheng, recently bought HK$1.2m worth of stock, paying HK$0.80 for each share. 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 Symphony Holdings

The Last 12 Months Of Insider Transactions At Symphony Holdings

Notably, that recent purchase by Chairman & CEO Tun Nei Cheng was not the only time they bought Symphony Holdings shares this year. They previously made an even bigger purchase of HK$1.6m worth of shares at a price of HK$0.82 per share. That implies that an insider found the current price of HK$0.83 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Symphony Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Tun Nei Cheng.

Tun Nei Cheng bought 9.60m shares over the last 12 months at an average price of HK$0.81. 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!

Symphony Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Symphony Holdings Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Symphony Holdings insiders own about HK$1.6b worth of shares (which is 67% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Symphony Holdings Tell Us?

It is good to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest Symphony Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of 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. Every company has risks, and we've spotted 1 warning sign for Symphony Holdings you should know about.

Of course Symphony 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.