Trade Alert: Chi Yuen Tsai At Phoenitron Holdings Limited (HKG:8066), Has Just Spent HK$138k Buying Shares
Whilst it may not be a huge deal, we thought it was good to see that Chi Yuen Tsai, who is a company insider, recently bought HK$138k worth of stock, for HK$0.17 per share. However, we do note that it only increased their holding by 0.9%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Phoenitron Holdings
Phoenitron Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by insider Chi Yuen Tsai was not their only acquisition of Phoenitron Holdings shares this year. Earlier in the year, they paid HK$0.23 per share in a HK$2.4m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.14). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Chi Yuen Tsai was the only individual insider to buy shares in the last twelve months.
Chi Yuen Tsai bought 11.22m shares over the last 12 months at an average price of HK$0.23. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Phoenitron Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Phoenitron Holdings 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. Insiders own 19% of Phoenitron Holdings shares, worth about HK$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Phoenitron Holdings Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Phoenitron Holdings we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Phoenitron Holdings is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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