Those following along with Great Eagle Holdings Limited (HKG:41) will no doubt be intrigued by the recent purchase of shares by Ka Shui Lo, Executive Chairman & MD of the company, who spent a stonking HK$11m on stock at an average price of HK$22.34. 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 0.4%.
The Last 12 Months Of Insider Transactions At Great Eagle Holdings
In fact, the recent purchase by Executive Chairman & MD Ka Shui Lo was not their only acquisition of Great Eagle Holdings shares this year. They previously made an even bigger purchase of HK$65m worth of shares at a price of HK$33.16 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being HK$21.40). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Ka Shui Lo was also the biggest seller.
Over the last year, we can see that insiders have bought 6.06m shares worth HK$171m. But they sold 10000 shares for HK$233k. In total, Great Eagle Holdings insiders bought more than they sold over the last year. Their average price was about HK$28.17. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Great Eagle Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Great Eagle Holdings insiders own 26% of the company, currently worth about HK$4.0b based on the recent share price. 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 Great Eagle Holdings Tell Us?
The recent insider purchase is heartening. 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 Great Eagle Holdings. Looks promising! While we like knowing 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 2 warning signs that you should run your eye over to get a better picture of Great Eagle Holdings.
Of course Great Eagle 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.
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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