Whilst it may not be a huge deal, we thought it was good to see that the Tycoon Group Holdings Limited (HKG:3390) Chairman & CEO, Ka Chun Wong, recently bought HK$524k worth of stock, for HK$3.49 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

The Last 12 Months Of Insider Transactions At Tycoon Group Holdings

In fact, the recent purchase by Chairman & CEO Ka Chun Wong was not their only trade of Tycoon Group Holdings shares this year. They previously made a sale of -HK$84m worth of shares at a price of HK$4.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$3.43). So it may not shed much light on insider confidence at current levels.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Tycoon Group Holdings insiders own about HK$1.5b worth of shares (which is 54% 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.

What Might The Insider Transactions At Tycoon Group Holdings Tell Us?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Tycoon Group Holdings insiders are fairly aligned, and optimistic. 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. Every company has risks, and we've spotted 1 warning sign for Tycoon Group Holdings you should know about.

Of course Tycoon Group Holdings 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 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.