Co-Founder & Executive Chairman of Kingboard Holdings Picks Up 3.8% More Stock

Those following along with Kingboard Holdings Limited (HKG:148) will no doubt be intrigued by the recent purchase of shares by Kwok Wing Cheung, Co-Founder & Executive Chairman of the company, who spent a stonking HK$4.8m on stock at an average price of HK$14.78. While that only increased their holding size by 3.8%, it is still a big swing by our standards.

See our latest analysis for Kingboard Holdings

Kingboard Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Co-Founder & Executive Chairman Kwok Wing Cheung was not their only acquisition of Kingboard Holdings shares this year. They previously made an even bigger purchase of HK$5.6m worth of shares at a price of HK$18.83 per share. That means that even when the share price was higher than HK$14.96 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Kwok Wing Cheung was the only individual insider to buy shares in the last twelve months.

Kwok Wing Cheung bought a total of 3.44m shares over the year at an average price of HK$16.73. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Kingboard Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kingboard Holdings insiders own about HK$385m worth of shares. That equates to 2.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Kingboard Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kingboard Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kingboard Holdings. Our analysis shows 2 warning signs for Kingboard Holdings (1 is significant!) and we strongly recommend you look at them before investing.

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.