Whilst it may not be a huge deal, we thought it was good to see that the Herald Holdings Limited (HKG:114) Executive Director, Tsang-Kay Cheung, recently bought HK$186k worth of stock, for HK$0.62 per share. That might not be a big purchase but it only increased their holding by 0.2%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Herald Holdings
Notably, that recent purchase by Tsang-Kay Cheung is the biggest insider purchase of Herald Holdings 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$0.68. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Herald Holdings insider decided to buy shares at close to current prices. Tsang-Kay Cheung was the only individual insider to buy over the year.
Tsang-Kay Cheung purchased 790000 shares over the year. The average price per share was HK$0.61. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Herald Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Herald Holdings insiders own 47% of the company, currently worth about HK$183m based on the recent share price. 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 Herald Holdings Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Herald Holdings. That's what I like to see! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Herald Holdings 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.
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.