Potential Kingboard Holdings Limited (HKG:148) shareholders may wish to note that the Co-Founder & Chairman, Kwok Wing Cheung, recently bought HK$1.4m worth of stock, paying HK$21.94 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.5%.
The Last 12 Months Of Insider Transactions At Kingboard Holdings
Notably, that recent sale by Co-Founder & Chairman Kwok Wing Cheung was not the only time they sold Kingboard Holdings shares this year. Earlier in the year, they fetched HK$28.53 per share in a -HK$53.2m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$22.70. So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid HK$112m for 6014000 shares. On the other hand they divested 6808065 shares, for HK$191m. In total, Kingboard Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Kingboard Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Kingboard Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Kingboard Holdings insiders own about HK$380m worth of shares. That equates to 1.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Kingboard Holdings Insiders?
The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. The recent buying by some insiders , along with high insider ownership, suggest that Kingboard Holdings insiders are fairly aligned, and optimistic. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: Kingboard Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.