Insider Buying: The Powerlong Real Estate Holdings Limited (HKG:1238) Deputy CEO & Executive Director Just Bought CN¥420k Worth Of Shares
Whilst it may not be a huge deal, we thought it was good to see that the Powerlong Real Estate Holdings Limited (HKG:1238) Deputy CEO & Executive Director, Qing Ping Xiao, recently bought HK$420k worth of stock, for HK$4.20 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
Check out our latest analysis for Powerlong Real Estate Holdings
Powerlong Real Estate Holdings Insider Transactions Over The Last Year
Executive Chairman of the Board Kin Hong Hoi made the biggest insider purchase in the last 12 months. That single transaction was for HK$792m worth of shares at a price of HK$5.40 each. That means that even when the share price was higher than HK$4.55 (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. To us, it's very important to consider the price insiders pay for shares. 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. We note that Kin Hong Hoi was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 152.25m shares worth HK$818m. On the other hand they divested 146600000 shares, for HK$792m. In the last twelve months there was more buying than selling by Powerlong Real Estate Holdings insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart 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 Powerlong Real Estate Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Powerlong Real Estate Holdings insiders own 66% of the company, currently worth about HK$12b 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 Powerlong Real Estate Holdings Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Powerlong Real Estate Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Powerlong Real Estate Holdings (1 is concerning!) and we strongly recommend you look at these before investing.
Of course Powerlong Real Estate 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
