Chairman & CEO David Chiu Just Bought Shares In Far East Consortium International Limited (HKG:35)
Far East Consortium International Limited (HKG:35) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, David Chiu, recently bought a whopping HK$23m worth of stock, at a price of HK$3.77. 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 0.5%.
View our latest analysis for Far East Consortium International
Far East Consortium International Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO David Chiu was not their only acquisition of Far East Consortium International shares this year. They previously made an even bigger purchase of HK$100m worth of shares at a price of HK$3.28 per share. That means that an insider was happy to buy shares at around the current price of HK$3.50. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Far East Consortium International share holders is that insiders were buying at near the current price.
In the last twelve months Far East Consortium International insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Far East Consortium International Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Far East Consortium International insiders own 49% of the company, currently worth about HK$4.1b 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.
So What Do The Far East Consortium International Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Far East Consortium International insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Far East Consortium International.
Of course Far East Consortium International 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 editorial-team@simplywallst.com. 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.
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