Whilst it may not be a huge deal, we thought it was good to see that the Modern Living Investments Holdings Limited (HKG:8426) CEO, Company Secretary & Executive Director, Fuk Wah Ng, recently bought HK$67k worth of stock, for HK$0.17 per share. That might not be a big purchase but it only increased their holding by 1.3%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Modern Living Investments Holdings
In fact, the recent purchase by CEO, Company Secretary & Executive Director Fuk Wah Ng was not their only acquisition of Modern Living Investments Holdings shares this year. Earlier in the year, they paid HK$0.16 per share in a HK$299k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.16). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Modern Living Investments Holdings insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Modern Living Investments Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Insiders own 11% of Modern Living Investments Holdings shares, worth about HK$14m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Modern Living Investments Holdings Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Modern Living Investments Holdings we think they are probably pretty confident of a bright future. 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.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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.
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. Thank you for reading.