The Independent Non-Executive Director of Xiangxing International Holding Limited (HKG:1732), Kee Cheung Ho, Just Bought 6.9% More Shares

Even if it's not a huge purchase, we think it was good to see that Kee Cheung Ho, the Independent Non-Executive Director of Xiangxing International Holding Limited (HKG:1732) recently shelled out HK$58k to buy stock, at HK$0.12 per share. However, it only increased their shares held by 6.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Xiangxing International Holding

Xiangxing International Holding Insider Transactions Over The Last Year

Earlier in the year, Independent Non-Executive Director Kee Cheung Ho paid HK$0.19 per share in a HK$384k purchase. That means that even when the share price was higher than HK$0.12 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kee Cheung Ho was the only individual insider to buy during the last year.

Kee Cheung Ho purchased 5.78m shares over the year. The average price per share was HK$0.15. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Xiangxing International Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Xiangxing International Holding insiders own about HK$70m worth of shares (which is 57% 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 Does This Data Suggest About Xiangxing International Holding Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Xiangxing International Holding. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Xiangxing International Holding you should know about.

Of course Xiangxing International Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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