Kidsland International Holdings Insiders Enjoying CN¥5.5m Appreciation On CN¥21.4m Investment

Kidsland International Holdings Limited (HKG:2122) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 31% resulting in a HK$23m addition to the company’s market value. In other words, the original CN¥21.4m purchase is now worth CN¥26.9m.

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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Kidsland International Holdings Insider Transactions Over The Last Year

The Chairman & CEO Ching Yiu Lee made the biggest insider purchase in the last 12 months. That single transaction was for HK$21m worth of shares at a price of HK$0.07 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.088. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Kidsland International Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Kidsland International 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Kidsland International Holdings insiders own about HK$68m worth of shares (which is 70% 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 Kidsland International Holdings Insider Transactions Indicate?

The fact that there have been no Kidsland International Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Kidsland International Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kidsland International Holdings. Every company has risks, and we've spotted 6 warning signs for Kidsland International Holdings (of which 4 make us uncomfortable!) you should know about.

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 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.