Investors who take an interest in Shougang Concord Grand (Group) Limited (HKG:730) should definitely note that insider Siu Hang Mak recently paid HK$0.11 per share to buy HK$1.1m worth of the stock. Although the purchase only increased their holding by 5.6%, it is still a solid purchase in our view.
Shougang Concord Grand (Group) Insider Transactions Over The Last Year
In fact, the recent purchase by Siu Hang Mak was the biggest purchase of Shougang Concord Grand (Group) shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.11. 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. 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 Shougang Concord Grand (Group) share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Siu Hang Mak.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Shougang Concord Grand (Group) 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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Shougang Concord Grand (Group) insiders own 4.6% of the company, worth about HK$20m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
So What Do The Shougang Concord Grand (Group) Insider Transactions Indicate?
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. Given that insiders also own a fair bit of Shougang Concord Grand (Group) we think they are probably pretty confident of 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. Case in point: We've spotted 3 warning signs for Shougang Concord Grand (Group) you should be aware of, and 1 of them shouldn't be ignored.
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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