Executive Chairman of Kingboard Laminates Holdings Kwok Wa Cheung Buys 23% More Shares

Kingboard Laminates Holdings Limited (HKG:1888) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Kwok Wa Cheung, recently bought a whopping HK$20m worth of stock, at a price of HK$32.87. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 23%.

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Kingboard Laminates Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Kwok Wa Cheung was not their only trade of Kingboard Laminates Holdings shares this year. They previously made a sale of -HK$383m worth of shares at a price of HK$87.66 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$30.40. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid HK$91m for 2.17m shares. But insiders sold 32.96m shares worth HK$2.4b. Over the last year we saw more insider selling of Kingboard Laminates Holdings shares, than buying. They sold for an average price of about HK$71.58. Insider selling doesn't make us excited to buy. But the selling was at much higher prices than the current share price (HK$30.40), so it probably doesn't tell us a lot about the value on offer today. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Kingboard Laminates Holdings

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Does Kingboard Laminates Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Kingboard Laminates Holdings insiders own about HK$370m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Kingboard Laminates Holdings Insider Transactions Indicate?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. The recent buying by some insiders , along with high insider ownership, suggest that Kingboard Laminates Holdings insiders are fairly aligned, and optimistic. While it's good to be aware of 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kingboard Laminates Holdings.

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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 of direct interests only, but not derivative transactions or indirect interests.

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