Investors who take an interest in Hanison Construction Holdings Limited (HKG:896) should definitely note that the Non-Executive Chairman, Mou-Sing Cha, recently paid HK$1.14 per share to buy HK$911k worth of the stock. Although the purchase only increased their holding by 0.2%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Hanison Construction Holdings
Notably, that recent purchase by Non-Executive Chairman Mou-Sing Cha was not the only time they bought Hanison Construction Holdings shares this year. They previously made an even bigger purchase of HK$1.3m worth of shares at a price of HK$1.35 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.16). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Hanison Construction Holdings insiders bought shares last year, they didn’t sell. Their average price was about HK$1.19. I’d consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Hanison Construction Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hanison Construction Holdings insiders own about HK$602m worth of shares (which is 48% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Hanison Construction Holdings Tell Us?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hanison Construction Holdings. Looks promising! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Hanison Construction Holdings. Case in point: We’ve spotted 2 warning signs for Hanison Construction Holdings you should be aware of.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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.
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. Thank you for reading.
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