Even if it's not a huge purchase, we think it was good to see that Hung Nang Choi, the Executive Chairman of D&G Technology Holding Company Limited (HKG:1301) recently shelled out HK$646k to buy stock, at HK$1.41 per share. That might not be a big purchase but it only increased their holding by 1.5%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At D&G Technology Holding
In fact, the recent purchase by Executive Chairman Hung Nang Choi was not their only acquisition of D&G Technology Holding shares this year. Earlier in the year, they paid HK$1.27 per share in a HK$1.0m purchase. That implies that an insider found the current price of HK$1.42 per share to be enticing. 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. Happily, the D&G Technology Holding insider decided to buy shares at close to current prices. Hung Nang Choi was the only individual insider to buy over the year.
Hung Nang Choi bought 16.58m shares over the last 12 months at an average price of HK$1.32. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. 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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that D&G Technology Holding insiders own 9.0% of the company, worth about HK$80m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At D&G Technology Holding Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest D&G Technology Holding insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
Of course D&G Technology Holding 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.
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