Bullish HK Asia Holdings Insiders Rewarded As Their Investment Rises To HK$6.00m

HK Asia Holdings Limited (HKG:1723) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a HK$12m addition to the company’s market value. In other words, the original HK$5.40m purchase is now worth HK$6.00m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for HK Asia Holdings

HK Asia Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Hung Kai Chan for HK$5.4m worth of shares, at about HK$0.27 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$0.30. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the HK Asia Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Hung Kai Chan.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does HK Asia Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. HK Asia Holdings insiders own 75% of the company, currently worth about HK$87m 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 HK Asia Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. 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 HK Asia Holdings. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that HK Asia Holdings is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

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.