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Have Insiders Been Buying Shougang Concord International Enterprises Company Limited (HKG:697) Shares?

Simply Wall St

We note that a Shougang Concord International Enterprises Company Limited (HKG:697) insider, , recently sold worth of stock for per share. On the bright side, that's just a small sale and only reduced their holding by .

See our latest analysis for Shougang Concord International Enterprises

The Last 12 Months Of Insider Transactions At Shougang Concord International Enterprises

President of Regional Development & Service Group and Executive Director Wei Li made the biggest insider purchase in the last 12 months. That single transaction was for HK$720k worth of shares at a price of HK$1.80 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.29). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

Shougang Concord International Enterprises insiders may have bought shares in the last year, but they didn't sell any. Their average price was about HK$1.40. This is nice to see since it implies that insiders might see value around current prices. 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!

SEHK:697 Recent Insider Trading June 1st 2020
SEHK:697 Recent Insider Trading June 1st 2020

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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about HK$5.4m worth of Shougang Concord International Enterprises shares. However, it's possible that insiders might have an indirect interest through a more complex structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The Shougang Concord International Enterprises Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Shougang Concord International Enterprises insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shougang Concord International Enterprises. In terms of investment risks, we've identified 4 warning signs with Shougang Concord International Enterprises and understanding these should be part of your investment process.

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.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.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. 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. Thank you for reading.