CFO & Executive Director of Star Plus Legend Holdings Picks Up 55% More Stock

Star Plus Legend Holdings Limited (HKG:6683) shareholders (or potential shareholders) will be happy to see that the CFO & Executive Director, Kwok Fai Lai, recently bought a whopping HK$392m worth of stock, at a price of HK$7.20. That purchase boosted their holding by 55%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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Star Plus Legend Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Kwok Fai Lai is the biggest insider purchase of Star Plus Legend Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$6.68. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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. Kwok Fai Lai was the only individual insider to buy during the last year. We note that Kwok Fai Lai was also the biggest seller.

Kwok Fai Lai bought a total of 92.02m shares over the year at an average price of HK$7.99. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Star Plus Legend Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Star Plus Legend Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Star Plus Legend Holdings insiders own about HK$3.4b worth of shares (which is 57% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Star Plus Legend Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Star Plus Legend Holdings. That's what I like to see! 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. At Simply Wall St, we've found that Star Plus Legend Holdings has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

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.