Whilst it may not be a huge deal, we thought it was good to see that the Hanison Construction Holdings Limited (HKG:896) Non-Executive Chairman, Mou Sing Cha, recently bought HK$312k worth of stock, for HK$1.13 per share. That might not be a big purchase but it only increased their holding by 0.06%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Hanison Construction Holdings
In fact, the recent purchase by Non-Executive Chairman Mou Sing Cha was not their only acquisition of Hanison Construction Holdings shares this year. They previously made an even bigger purchase of HK$1.7m worth of shares at a price of HK$1.73 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.16). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Hanison Construction Holdings insiders were buying shares, but not selling. Their average price was about HK$1.51. 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership of Hanison Construction Holdings
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Hanison Construction Holdings insiders own 48% of the company, worth about HK$587m. 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 Does This Data Suggest About Hanison Construction Holdings Insiders?
The recent insider purchase is heartening. 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 Hanison Construction Holdings. Nice! I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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.
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 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. Thank you for reading.