Founder Hsiao Tung Yao Just Bought 3.3% More Shares In Hi-P International Limited (SGX:H17)

Those following along with Hi-P International Limited (SGX:H17) will no doubt be intrigued by the recent purchase of shares by Hsiao Tung Yao, Founder of the company, who spent a stonking S$45m on stock at an average price of S$2.00. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.3%.

Check out our latest analysis for Hi-P International

The Last 12 Months Of Insider Transactions At Hi-P International

In fact, the recent purchase by Hsiao Tung Yao was the biggest purchase of Hi-P International shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is S$2.00. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Hi-P International share holders is that an insider was buying at near the current price. Hsiao Tung Yao was the only individual insider to buy during the last year.

Hsiao Tung Yao bought a total of 25.43m shares over the year at an average price of S$2.00. 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 growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hi-P International insiders own about S$1.4b worth of shares (which is 89% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Hi-P International Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hi-P International. One for the watchlist, at least! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Hi-P International.

But note: Hi-P International 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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