Potential Haichang Ocean Park Holdings Ltd. (HKG:2255) shareholders may wish to note that the Executive Director, Cheng Qu, recently bought CN¥885k worth of stock, paying CN¥0.88 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.0%.
Haichang Ocean Park Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Director Cheng Qu was not the only time they bought Haichang Ocean Park Holdings shares this year. Earlier in the year, they paid HK$1.25 per share in a HK$999k purchase. That means that even when the share price was higher than HK$0.90 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Cheng Qu was the only individual insider to buy over the year.
Cheng Qu bought a total of 1800000 shares over the year at an average price of HK$1.05. The chart below shows insider transactions (by 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!
Haichang Ocean Park Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Haichang Ocean Park Holdings insiders own 46% of the company, currently worth about HK$1.7b 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.
What Might The Insider Transactions At Haichang Ocean Park Holdings Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Haichang Ocean Park Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Haichang Ocean Park Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.