Whilst it may not be a huge deal, we thought it was good to see that the Tai Hing Group Holdings Limited (HKG:6811) Executive Chairman, Wing On Chan, recently bought HK$454k worth of stock, for HK$0.69 per share. However, it only increased their shares held by 6.5%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Tai Hing Group Holdings
Notably, that recent purchase by Executive Chairman Wing On Chan was not the only time they bought Tai Hing Group Holdings shares this year. Earlier in the year, they paid HK$0.90 per share in a HK$930k purchase. That means that an insider was happy to buy shares at above the current price of HK$0.67. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Wing On Chan was the only individual insider to buy during the last year. We note that Wing On Chan was also the biggest seller.
Wing On Chan purchased 5.94m shares over the year. The average price per share was HK$0.84. 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!
Tai Hing Group Holdings 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own HK$15m worth of Tai Hing Group Holdings stock, about 2.3% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Tai Hing Group Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Tai Hing Group Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tai Hing Group Holdings. At Simply Wall St, we found 3 warning signs for Tai Hing Group Holdings that deserve your attention before buying any shares.
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.
