Melco International Development Limited (HKG:200) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Yau Lung Ho, recently bought a whopping HK$32m worth of stock, at a price of HK$14.49. While that only increased their holding size by 0.4%, it is still a big swing by our standards.
Melco International Development Insider Transactions Over The Last Year
Notably, that recent purchase by Yau Lung Ho is the biggest insider purchase of Melco International Development shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$14.66. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Yau Lung Ho.
Yau Lung Ho purchased 12.76m shares over the year. The average price per share was HK$13.25. 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!
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 Melco 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. Melco International Development insiders own about HK$8.1b worth of shares (which is 37% of the company). 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 Melco International Development Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Melco International Development insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Melco International Development is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course Melco International Development 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.
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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. Thank you for reading.