Those following along with PT International Development Corporation Limited (HKG:372) will no doubt be intrigued by the recent purchase of shares by Man Chun Ching, Chairman & MD of the company, who spent a stonking HK$20m on stock at an average price of HK$0.20. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 20%.
International Development Insider Transactions Over The Last Year
Notably, that recent purchase by Man Chun Ching is the biggest insider purchase of International Development shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (HK$0.31), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
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 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.
Insider Ownership of International Development
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that International Development insiders own 39% of the company, worth about HK$251m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About International Development Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest International Development insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing International Development. At Simply Wall St, we've found that International Development has 5 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
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.
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