Executive Chairman Kang Kwong Wong Just Bought 2.5% More Shares In Lap Kei Engineering (Holdings) Limited (HKG:1690)

Whilst it may not be a huge deal, we thought it was good to see that the Lap Kei Engineering (Holdings) Limited (HKG:1690) Executive Chairman, Kang Kwong Wong, recently bought HK$159k worth of stock, for HK$0.066 per share. However, it only increased shares held by 2.5%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Lap Kei Engineering (Holdings)

Lap Kei Engineering (Holdings) Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Kang Kwong Wong was not their only acquisition of Lap Kei Engineering (Holdings) shares this year. Earlier in the year, they paid HK$0.16 per share in a HK$2.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.062). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Lap Kei Engineering (Holdings) insiders may have bought shares in the last year, but they didn't sell any. They paid about HK$0.14 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership of Lap Kei Engineering (Holdings)

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.1% of Lap Kei Engineering (Holdings) shares, worth about HK$6.7m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Lap Kei Engineering (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. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Lap Kei Engineering (Holdings) insiders are reasonably well aligned, and optimistic for the future. While we like knowing 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. Every company has risks, and we've spotted 4 warning signs for Lap Kei Engineering (Holdings) (of which 1 is potentially serious!) you should know about.

But note: Lap Kei Engineering (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.

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