Insider Spends HK$4.3m Buying More Shares In Kingboard Holdings
Those following along with Kingboard Holdings Limited (HKG:148) will no doubt be intrigued by the recent purchase of shares by Kwok Wing Cheung, Co-Founder & Executive Chairman of the company, who spent a stonking HK$4.3m on stock at an average price of HK$51.70. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.9%.
The Last 12 Months Of Insider Transactions At Kingboard Holdings
Over the last year, we can see that the biggest insider sale was by the Executive Director, Kwong Kwan Cheung, for HK$624m worth of shares, at about HK$121 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$52.75. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Kingboard Holdings shares, than buying. The average sell price was around HK$91.28. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of HK$52.75. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Kingboard Holdings
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Insider Ownership Of Kingboard Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kingboard Holdings insiders own about HK$717m worth of shares. That equates to 1.2% 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 Holdings Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Kingboard Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Kingboard Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Kingboard Holdings (2 shouldn't be ignored!) that we believe deserve your full attention.
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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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.