Truly International Holdings Limited (HKG:732) shareholders (or potential shareholders) will be happy to see that the Executive Chairman & MD, Wai Wah Lam, recently bought a whopping HK$6.2m worth of stock, at a price of HK$1.09. While that only increased their holding size by 0.4%, it is still a big swing by our standards.
Check out our latest analysis for Truly International Holdings
The Last 12 Months Of Insider Transactions At Truly International Holdings
Notably, that recent purchase by Executive Chairman & MD Wai Wah Lam was not the only time they bought Truly International Holdings shares this year. They previously made an even bigger purchase of HK$8.3m worth of shares at a price of HK$0.76 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$1.12), 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.
In the last twelve months Truly International Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Truly International Holdings insiders own about HK$1.8b worth of shares (which is 50% 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 Truly International Holdings Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Truly International Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Truly International Holdings (of which 1 is significant!) you should know about.
Of course Truly International 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com