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Executive Chairman & MD Ka Shui Lo Just Bought Shares In Great Eagle Holdings Limited (HKG:41)

Great Eagle Holdings Limited (HKG:41) shareholders (or potential shareholders) will be happy to see that the Executive Chairman & MD, Ka Shui Lo, recently bought a whopping HK$78m worth of stock, at a price of HK$19.60. While that only increased their holding size by 2.9%, it is still a big swing by our standards.

See our latest analysis for Great Eagle Holdings

Great Eagle Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Ka Shui Lo is the biggest insider purchase of Great Eagle Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$19.72. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices. We note that Ka Shui Lo was also the biggest seller.

In the last twelve months insiders purchased 11.45m shares for HK$278m. But they sold 10000 shares for HK$233k. In the last twelve months there was more buying than selling by Great Eagle Holdings insiders. They paid about HK$24.28 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:41 Recent Insider Trading April 2nd 2020
SEHK:41 Recent Insider Trading April 2nd 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Great Eagle 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. We usually like to see fairly high levels of insider ownership. It's great to see that Great Eagle Holdings insiders own 26% of the company, worth about HK$3.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Great Eagle Holdings Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Great Eagle Holdings. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Great Eagle Holdings that deserve your attention before buying any shares.

But note: Great Eagle Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.