How Much Are Skyworth Digital Holdings Limited (HKG:751) Insiders Spending On Buying Shares?
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Skyworth Digital Holdings Limited (HKG:751).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Skyworth Digital Holdings
The Last 12 Months Of Insider Transactions At Skyworth Digital Holdings
Over the last year, we can see that the biggest insider purchase was by Founder and Consultant Wang Sang Wong for HK$105m worth of shares, at about HK$3.79 per share. That means that an insider was happy to buy shares at above the current price. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders paid HK$141m for 37.80m shares purchased. In the last twelve months there was more buying than selling by Skyworth Digital Holdings insiders. The average buy price was around HK$3.72. These transactions suggest that insiders have considered the current price of HK$2.85 attractive. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Skyworth Digital Holdings insiders own 41% of the company, worth about HK$3.5b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Skyworth Digital Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Skyworth Digital Holdings insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Skyworth Digital Holdings, you should check out this free report on analyst forecasts for the company.
Of course Skyworth Digital Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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. Thank you for reading.
