How many shares of CK Asset Holdings Limited (HKG: 1113) have insiders purchased in the past year?
It is not uncommon to see companies perform well in the years following an insider purchase of shares. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. Shareholders might therefore want to know if any insiders bought or sold shares of CK Asset Holdings Limited (HKG: 1113).
What is an insider?
Most investors know that it is okay for business executives, such as directors of the board of directors, to buy and sell company stock. However, these insiders should disclose their trading activities and not trade on the basis of inside information.
We don’t believe shareholders should just follow insider trading. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Columbia University to study found that “insiders are more likely to engage in open market purchases of their own company’s stocks when the company is about to reveal new deals with customers and suppliers.”
Check out our latest analysis for CK Asset Holdings
CK Asset Holdings insider trading in the past year
In the past twelve months, the biggest buy by an insider was when Deputy Managing Director and Executive Director Tak Chuen Ip bought HK $ 13 million of shares at a price of HK $ 41.75 per share. While we love to see insider buys, we note that this significant purchase was significantly lower than the recent HK $ 52.95 price tag. While it does suggest that insiders view the stock as undervalued at lower prices, this trade doesn’t tell us much about what they think about current prices.
Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
CK Asset Holdings isn’t the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Insider ownership of CK Asset Holdings
Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. It’s great to see that CK Asset Holdings insiders own 6.0% of the company, worth around HK $ 12 billion. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.
So what does this data suggest about CK Asset Holdings insiders?
We certainly don’t mind the fact that there hasn’t been any CK Asset Holdings insider trading recently. But insiders have shown more appetite for the stock, over the past year. With strong insider ownership and encouraging transactions, it seems CK Asset Holdings insiders believe the company has merit. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Every business has risks, and we have spotted 1 warning sign for CK Asset Holdings you should know.
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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