Whilst it may not be a huge deal, we thought it was good to see that the Da Sen Holdings Group Limited (HKG:1580) Executive Director, Kaw Chai, recently bought CN¥219k worth of stock, for CN¥0.44 per share. That might not be a big purchase but it only increased their holding by 1.0%, and could be interpreted as a good sign.
Da Sen Holdings Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Tseng Hon Wong for HK$10.0m worth of shares, at about HK$0.50 per share. That means that even when the share price was higher than HK$0.47 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid HK$27m for 56030000 shares. But insiders sold 20000000 shares worth HK$9.7m. In the last twelve months there was more buying than selling by Da Sen Holdings Group insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Da Sen Holdings Group insiders own about HK$223m worth of shares (which is 53% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Da Sen Holdings Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Da Sen Holdings Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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. Thank you for reading.