Trade Alert: The Chairman of the Board Of Deswell Industries, Inc. (NASDAQ:DSWL), Hon Pui, Has Just Spent US$186k Buying A Few More Shares
Investors who take an interest in Deswell Industries, Inc. (NASDAQ:DSWL) should definitely note that the Chairman of the Board, Hon Pui, recently paid US$3.57 per share to buy US$186k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for Deswell Industries
Deswell Industries Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman of the Board Hon Pui was not the only time they bought Deswell Industries shares this year. Earlier in the year, they paid US$2.54 per share in a US$371k purchase. We do like to see buying, but this purchase was made at well below the current price of US$3.67. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Hon Pui bought a total of 325.58k shares over the year at an average price of US$2.69. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Deswell Industries insiders own 66% of the company, worth about US$38m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Deswell Industries Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Deswell Industries insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Deswell Industries you should know about.
Of course Deswell Industries 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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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