Those following along with BoardWare Intelligence Technology Limited (HKG:1204) will no doubt be intrigued by the recent purchase of shares by Ka Chon Chao, Chairman of the Board & CEO of the company, who spent a stonking HK$9.0m on stock at an average price of HK$2.60. While that only increased their holding size by 1.1%, it is still a big swing by our standards.
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BoardWare Intelligence Technology Insider Transactions Over The Last Year
In fact, the recent purchase by Ka Chon Chao was the biggest purchase of BoardWare Intelligence Technology shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of HK$3.60. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
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
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. We usually like to see fairly high levels of insider ownership. It's great to see that BoardWare Intelligence Technology insiders own 68% of the company, worth about HK$1.2b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About BoardWare Intelligence Technology Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about BoardWare Intelligence Technology. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BoardWare Intelligence Technology. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of BoardWare Intelligence Technology.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
