Chun Chan Spends HK$2.2m Buying Playmates Toys Shares

Potential Playmates Toys Limited (HKG:869) shareholders may wish to note that insider Chun Chan recently bought HK$2.2m worth of stock, paying HK$0.40 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 16%.

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The Last 12 Months Of Insider Transactions At Playmates Toys

Notably, that recent purchase by Chun Chan is the biggest insider purchase of Playmates Toys shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.40. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Chun Chan was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Playmates Toys

Playmates Toys is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Playmates Toys

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. Based on our data, Playmates Toys insiders have about 3.4% of the stock, worth approximately HK$16m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Playmates Toys Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Playmates Toys shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of 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. To that end, you should learn about the 4 warning signs we've spotted with Playmates Toys (including 1 which is significant).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.