Even if it's not a huge purchase, we think it was good to see that Yan Yan Li, a Ming Lam Holdings Limited (HKG:1106) insider, recently shelled out HK$109k to buy stock, at HK$0.022 per share. However, we do note that it only increased their holding by 3.3%, and it wasn't a huge purchase by absolute value, either.
Ming Lam Holdings Insider Transactions Over The Last Year
insider Shiu Hoi Tse made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.0m worth of shares at a price of HK$0.021 each. That implies that an insider found the current price of HK$0.021 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Ming Lam Holdings insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid HK$3.2m for 153.00m shares. On the other hand they divested 71000000 shares, for HK$2.8m. In the last twelve months there was more buying than selling by Ming Lam Holdings insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Ming Lam Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ming Lam Holdings insiders own about HK$95m worth of shares. That equates to 29% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Ming Lam Holdings Tell Us?
It's certainly positive to see the recent insider purchases. 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 Ming Lam Holdings insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
Of course Ming Lam 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, but not derivative transactions.
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