Whilst it may not be a huge deal, we thought it was good to see that Yuen Hing Lam, who is a company insider, recently bought HK$595k worth of stock, for HK$1.09 per share. However, we do note that it only increased their holding by 3.0%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Midland Holdings
Founder & Chairman Kin Yip Wong made the biggest insider purchase in the last 12 months. That single transaction was for HK$115m worth of shares at a price of HK$2.00 each. That means that even when the share price was higher than HK$1.05 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid HK$115m for 57.99m shares. But they sold 37684176 for HK$66m. In the last twelve months there was more buying than selling by Midland Holdings insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Midland Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Midland Holdings insiders own about HK$335m worth of shares (which is 44% of the company). 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 Midland Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Midland Holdings. That's what I like to see! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Midland 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.
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.
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