Even if it's not a huge purchase, we think it was good to see that Chin Ying Chan, the Executive Director of Sheung Yue Group Holdings Limited (HKG:1633) recently shelled out HK$216k to buy stock, at HK$0.18 per share. Even though that isn't a massive buy, it did increase their holding by 103%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Sheung Yue Group Holdings
In fact, the recent purchase by Chin Ying Chan was the biggest purchase of Sheung Yue Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$0.20. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Sheung Yue Group Holdings share holders is that an insider was buying at near the current price. Chin Ying Chan was the only individual insider to buy shares in the last twelve months.
Chin Ying Chan purchased 2.36m shares over the year. The average price per share was HK$0.18. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Sheung Yue Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Sheung Yue Group Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our information indicates that Sheung Yue Group Holdings insiders own about HK$209k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Sheung Yue Group Holdings Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Sheung Yue Group Holdings insiders are expecting a bright 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. For instance, we've identified 3 warning signs for Sheung Yue Group Holdings (1 is concerning) you should be aware of.
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, but not derivative transactions.
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