B.Duck Semk Holdings International Limited (HKG:2250) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 29% resulting in a HK$363m addition to the company’s market value. In other words, the original HK$3.99m purchase is now worth HK$6.20m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
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Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Ha Lam Hui for HK$4.0m worth of shares, at about HK$1.05 per share. We do like to see buying, but this purchase was made at well below the current price of HK$1.63. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
Check out our latest analysis for B.Duck Semk Holdings International
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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. B.Duck Semk Holdings International insiders own 69% of the company, currently worth about HK$1.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like B.Duck Semk Holdings International insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing B.Duck Semk Holdings International. When we did our research, we found 2 warning signs for B.Duck Semk Holdings International (1 is potentially serious!) that we believe deserve your full attention.
Of course B.Duck Semk Holdings International 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.
Discover if B.Duck Semk Holdings International might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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