Over the last year, a good number of insiders have significantly increased their holdings in Luk Fook Holdings (International) Limited (HKG:590). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Luk Fook Holdings (International) Insider Transactions Over The Last Year

The Founder Wai Sheung Wong made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.5m worth of shares at a price of HK$19.54 each. Even though the purchase was made at a significantly lower price than the recent price (HK$22.00), 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 insiders purchased 534.00k shares for HK$10m. But insiders sold 53.42k shares worth HK$1.2m. Overall, Luk Fook Holdings (International) insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Luk Fook Holdings (International) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Luk Fook Holdings (International) 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. Luk Fook Holdings (International) insiders own about HK$269m worth of shares. That equates to 2.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Luk Fook Holdings (International) Insiders?

The fact that there have been no Luk Fook Holdings (International) insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Luk Fook Holdings (International) insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Luk Fook Holdings (International). While conducting our analysis, we found that Luk Fook Holdings (International) has 1 warning sign and it would be unwise to ignore it.

But note: Luk Fook Holdings (International) 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 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.