How Many Symphony Holdings Limited (HKG:1223) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Symphony Holdings Limited (HKG:1223).

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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Symphony Holdings

The Last 12 Months Of Insider Transactions At Symphony Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Lu Lambert bought HK$83m worth of shares at a price of HK$0.83 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$0.94. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Symphony Holdings insiders decided to buy shares at close to current prices. We note that Lu Lambert was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid HK$129m for 156.49m shares. But they sold 76.00m shares for HK$71m. In total, Symphony Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Symphony Holdings Insiders Bought Stock Recently

At Symphony Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, Chairman & CEO Tun Nei Cheng bought HK$11m worth of shares in that time. But we did see Head of Real Estate Division & Executive Director Cheung Ming Lee sell shares worth HK$2.5m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership of Symphony Holdings

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. It's great to see that Symphony Holdings insiders own 65% of the company, worth about HK$1.8b. 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 Do The Symphony Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Symphony Holdings. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Symphony Holdings you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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