CK Hutchison Holdings Limited (HKG:1) shareholders (or potential shareholders) will be happy to see that the Group Co-MD & Executive Director, Kin Ning Fok, recently bought a whopping HK$9.4m worth of stock, at a price of HK$46.81. While that only increased their holding size by 3.4%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At CK Hutchison Holdings
Notably, that recent purchase by Group Co-MD & Executive Director Kin Ning Fok was not the only time they bought CK Hutchison Holdings shares this year. Earlier in the year, they paid HK$405 per share in a HK$141m purchase. That means that an insider was happy to buy shares at above the current price of HK$50.15. 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 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.
CK Hutchison Holdings insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$161. These transactions suggest that insiders have considered the current price attractive. 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!
CK Hutchison Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does CK Hutchison 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that CK Hutchison Holdings insiders own 29% of the company, worth about HK$56b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About CK Hutchison Holdings Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest CK Hutchison Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! 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 CK Hutchison Holdings (2 make us uncomfortable!) and we strongly recommend you look at these before investing.
Of course CK Hutchison 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 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.
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.