Potential Boltek Holdings Limited (HKG:8601) shareholders may wish to note that the Executive Chairman, Kwan Tar Cheung, recently bought HK$2.8m worth of stock, paying HK$0.08 for each share. Although the purchase only increased their holding by 6.4%, it is still a solid purchase in our view.

Boltek Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Kwan Tar Cheung is the biggest insider purchase of Boltek Holdings shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.28. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Boltek Holdings insiders were buying shares, but not selling. The average buy price was around HK$0.16. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

Boltek Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Boltek Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Boltek Holdings insiders own 82% of the company, worth about HK$188m. 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 Do The Boltek Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Boltek Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Boltek Holdings is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course Boltek 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.