Insider Buying: The Telecom Digital Holdings Limited (HKG:6033) Executive Chairman Just Bought HK$327k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Telecom Digital Holdings Limited (HKG:6033) Executive Chairman, King Shek Cheung, recently bought HK$327k worth of stock, for HK$2.18 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Telecom Digital Holdings

The Last 12 Months Of Insider Transactions At Telecom Digital Holdings

In fact, the recent purchase by King Shek Cheung was the biggest purchase of Telecom Digital Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$2.17 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that King Shek Cheung was also the biggest seller.

Over the last year, we can see that insiders have bought 506.00k shares worth HK$1.1m. But they sold 1.00k shares for HK$2.1k. In total, Telecom Digital 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Telecom Digital Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Telecom Digital Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Telecom Digital Holdings insiders own 20% of the company, worth about HK$179m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Telecom Digital Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Telecom Digital Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Telecom Digital Holdings. You'd be interested to know, that we found 1 warning sign for Telecom Digital Holdings and we suggest you have a look.

But note: Telecom Digital 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.

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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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