Stock Analysis

Insider Buys Additional HK$5.3m In Symphony Holdings Stock

Published
SEHK:1223
Source: Shutterstock

Those following along with Symphony Holdings Limited (HKG:1223) will no doubt be intrigued by the recent purchase of shares by Tun Nei Cheng, Chairman & CEO of the company, who spent a stonking HK$5.3m on stock at an average price of HK$0.88. While that only increased their holding size by 0.5%, it is still a big swing by our standards.

View our latest analysis for Symphony Holdings

The Last 12 Months Of Insider Transactions At Symphony Holdings

Notably, that recent purchase by Tun Nei Cheng is the biggest insider purchase of Symphony Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.85. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Symphony Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:1223 Insider Trading Volume December 6th 2023

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.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Symphony Holdings insiders own 63% of the company, currently worth about HK$1.6b based on the recent share price. 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 Does This Data Suggest About Symphony Holdings Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Symphony Holdings. Looks promising! 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. For example - Symphony Holdings has 1 warning sign we think you should be aware of.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Symphony Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis