Even if it's not a huge purchase, we think it was good to see that Kam Wong, the Vice Chairman & CEO of Golden Wheel Tiandi Holdings Company Limited (HKG:1232) recently shelled out HK$423k to buy stock, at HK$0.60 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 30%.
The Last 12 Months Of Insider Transactions At Golden Wheel Tiandi Holdings
Notably, that recent purchase by Kam Wong is the biggest insider purchase of Golden Wheel Tiandi Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.60. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Golden Wheel Tiandi Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!
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).
Does Golden Wheel Tiandi Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Golden Wheel Tiandi Holdings shares, worth about HK$179m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Golden Wheel Tiandi Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Golden Wheel Tiandi Holdings. Looks promising! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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 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.
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