We'd be surprised if PCCW Limited (HKG:8) shareholders haven't noticed that the Acting Group MD, Hon Hing Hui, recently sold HK$3.4m worth of stock at HK$3.89 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At PCCW
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Tzar Kai Li bought HK$14m worth of shares at a price of HK$3.86 per share. That means that an insider was happy to buy shares at around the current price of HK$3.90. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for PCCW share holders is that an insider was buying at near the current price. Tzar Kai Li was the only individual insider to buy shares in the last twelve months.
Tzar Kai Li purchased 72.52m shares over the year. The average price per share was HK$3.78. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
PCCW is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of PCCW
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PCCW insiders own 7.0% of the company, currently worth about HK$2.1b based on the recent share price. 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 PCCW Insiders?
An insider hasn't bought PCCW stock in the last three months, but there was some selling. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PCCW. At Simply Wall St, we've found that PCCW has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com