Co-Founder & Executive Chairman of Kingboard Holdings Kwok Wing Cheung Buys 4.4% More Shares

Kingboard Holdings Limited (HKG:148) shareholders (or potential shareholders) will be happy to see that the Co-Founder & Executive Chairman, Kwok Wing Cheung, recently bought a whopping HK$5.1m worth of stock, at a price of HK$14.86. While that only increased their holding size by 4.4%, it is still a big swing by our standards.

See our latest analysis for Kingboard Holdings

The Last 12 Months Of Insider Transactions At Kingboard Holdings

Notably, that recent purchase by Co-Founder & Executive Chairman Kwok Wing Cheung was not the only time they traded Kingboard Holdings shares this year. Earlier in the year, they sold shares at a price ofHK$22.00 per share in a -HK$22m transaction. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$16.04. So it may not shed much light on insider confidence at current levels.

Kwok Wing Cheung purchased 4.15m shares over the year. The average price per share was HK$17.73. 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!

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.

Does Kingboard 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. We usually like to see fairly high levels of insider ownership. Kingboard Holdings insiders own about HK$399m worth of shares. That equates to 2.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Kingboard Holdings Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kingboard Holdings. That's what I like to see! 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. At Simply Wall St, we found 1 warning sign for Kingboard Holdings that deserve your attention before buying any shares.

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.