EN
Sunwah Kingsway Capital Holdings' HK$18m Market Cap Fall Books Insider Losses
Insiders who bought HK$804.2k worth of Sunwah Kingsway Capital Holdings Limited's (HKG:188) stock at an average buy price of HK$0.25 over the last year may be disappointed by the recent 10% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth HK$675.5k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Sunwah Kingsway Capital Holdings
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Koon Ming Choi for HK$804k worth of shares, at about HK$0.25 per share. That means that even when the share price was higher than HK$0.21 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Koon Ming Choi.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Sunwah Kingsway Capital Holdings
Sunwah Kingsway Capital Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. It appears that Sunwah Kingsway Capital Holdings insiders own 39% of the company, worth about HK$63m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Sunwah Kingsway Capital Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Sunwah Kingsway Capital Holdings and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sunwah Kingsway Capital Holdings. Be aware that Sunwah Kingsway Capital Holdings is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.