The Chairman & CEO of Pacific Online Limited (HKG:543), Wai Yan Lam, Just Bought 0.05% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Pacific Online Limited (HKG:543) Chairman & CEO, Wai Yan Lam, recently bought HK$218k worth of stock, for HK$1.26 per share. However, we do note that it only increased their holding by 0.05%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Pacific Online
Pacific Online Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Wai Yan Lam was not their only acquisition of Pacific Online shares this year. They previously made an even bigger purchase of HK$671k worth of shares at a price of HK$1.69 per share. That means that even when the share price was higher than HK$1.27 (the recent price), an insider wanted to purchase shares. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Wai Yan Lam was the only individual insider to buy over the year.
Wai Yan Lam bought 3.44m shares over the last 12 months at an average price of HK$1.58. 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!
Pacific Online is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Pacific Online Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Pacific Online insiders own about HK$828m worth of shares (which is 60% 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.
So What Do The Pacific Online Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pacific Online. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pacific Online. At Simply Wall St, we've found that Pacific Online has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Pacific Online may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.
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.
