Chairman & CEO Chung Wing Lo Just Bought 2.4% More Shares In Gold Peak Industries (Holdings) Limited (HKG:40)

Potential Gold Peak Industries (Holdings) Limited (HKG:40) shareholders may wish to note that the Chairman & CEO, Chung Wing Lo, recently bought HK$3.0m worth of stock, paying HK$0.64 for each share. Although the purchase only increased their holding by 2.4%, it is still a solid purchase in our view.

See our latest analysis for Gold Peak Industries (Holdings)

The Last 12 Months Of Insider Transactions At Gold Peak Industries (Holdings)

Notably, that recent purchase by Chung Wing Lo is the biggest insider purchase of Gold Peak Industries (Holdings) shares that we've seen in the last year. That means that even when the share price was higher than HK$0.64 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. 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. Chung Wing Lo was the only individual insider to buy during the last year.

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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Gold Peak Industries (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. Gold Peak Industries (Holdings) insiders own about HK$238m worth of shares (which is 47% of the company). 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 Gold Peak Industries (Holdings) Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Gold Peak Industries (Holdings) insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing 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. To that end, you should learn about the 2 warning signs we've spotted with Gold Peak Industries (Holdings) (including 1 which is a bit concerning).

But note: Gold Peak Industries (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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