Bullish Kingboard Holdings Insiders Loaded Up On HK$92.2m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Kingboard Holdings Limited (HKG:148) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Kingboard Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Head of Chemical Business Operations & Executive Director Yin Sang Ho bought HK$19m worth of shares at a price of HK$19.26 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$25.70), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Kingboard Holdings insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Kingboard Holdings

Kingboard Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Kingboard Holdings Insiders Bought Stock Recently

It's good to see that Kingboard Holdings insiders have made notable investments in the company's shares. Specifically, Co-Founder & Executive Chairman Kwok Wing Cheung bought HK$28m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Kingboard Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kingboard Holdings insiders own about HK$920m worth of shares (which is 3.2% 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 Kingboard Holdings Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Kingboard Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of 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. Be aware that Kingboard Holdings is showing 3 warning signs in our investment analysis, and 1 of those is concerning...

Of course Kingboard 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.