Insider Buys Additional HK$2.8m In Symphony Holdings Stock

Investors who take an interest in Symphony Holdings Limited (HKG:1223) should definitely note that the Chairman & CEO, Tun Nei Cheng, recently paid HK$0.81 per share to buy HK$2.8m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Symphony Holdings

The Last 12 Months Of Insider Transactions At Symphony Holdings

In fact, the recent purchase by Tun Nei Cheng was the biggest purchase of Symphony Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.83 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 insider decided to buy shares at close to current prices. Tun Nei Cheng was the only individual insider to buy during the last year.

Tun Nei Cheng bought a total of 11.10m shares over the year at an average price of HK$0.80. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Symphony Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Symphony Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Symphony Holdings insiders own 67% of the company, currently worth about HK$1.7b 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 Do The Symphony Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little 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. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Symphony Holdings. You'd be interested to know, that we found 1 warning sign for Symphony Holdings and we suggest you have a look.

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 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.