Those following along with Koolearn Technology Holding Limited (HKG:1797) will no doubt be intrigued by the recent purchase of shares by Minhong Yu, Chairman of the company, who spent a stonking HK$32m on stock at an average price of HK$26.50. While that only increased their holding size by 8.7%, it is still a big swing by our standards.
Koolearn Technology Holding Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Hua Tang, sold HK$32m worth of shares at a price of HK$19.97 per share. That means that an insider was selling shares at slightly below the current price (HK$31.80). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 3.4% of Hua Tang's holding. The only individual insider seller over the last year was Hua Tang.
Minhong Yu purchased 2.00m shares over the year. The average price per share was HK$26.95. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Koolearn Technology Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Koolearn Technology Holding insiders own 9.5% of the company, currently worth about HK$2.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Koolearn Technology Holding Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Koolearn Technology Holding. One for the watchlist, at least! 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. You'd be interested to know, that we found 3 warning signs for Koolearn Technology Holding and we suggest you have a look.
But note: Koolearn Technology Holding 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.
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