Whilst it may not be a huge deal, we thought it was good to see that the DTXS Silk Road Investment Holdings Company Limited (HKG:620) Chairman of the Board, Jianzhong Lu, recently bought HK$256k worth of stock, for HK$5.12 per share. Although the purchase is not a big one, increasing shareholding by only 1.0%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At DTXS Silk Road Investment Holdings
Notably, that recent purchase by Jianzhong Lu is the biggest insider purchase of DTXS Silk Road Investment Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$5.13. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Jianzhong Lu was the only individual insider to buy during the last year.
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!
DTXS Silk Road Investment Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does DTXS Silk Road Investment 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. Based on our data, DTXS Silk Road Investment Holdings insiders have about 0.7% of the stock, worth approximately HK$26m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About DTXS Silk Road Investment Holdings Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest DTXS Silk Road Investment Holdings insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that DTXS Silk Road Investment Holdings has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
Of course DTXS Silk Road Investment Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.