Potential Da Sen Holdings Group Limited (HKG:1580) shareholders may wish to note that insider Tseng Hon Wong recently bought HK$1.0m worth of stock, paying HK$0.51 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.1%.
The Last 12 Months Of Insider Transactions At Da Sen Holdings Group
In fact, the recent purchase by insider Tseng Hon Wong was not their only acquisition of Da Sen Holdings Group shares this year. Earlier in the year, they paid HK$0.50 per share in a HK$10.0m purchase. That means that an insider was happy to buy shares at around the current price of HK$0.51. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Da Sen Holdings Group share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 58.73m shares worth HK$29m. But they sold 20400000 for HK$10.0m. 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Da Sen Holdings 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.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Da Sen Holdings Group insiders own about HK$270m worth of shares (which is 54% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Da Sen Holdings Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Da Sen Holdings Group. Nice! Along with insider transactions, I recommend checking if Da Sen Holdings Group is growing revenue. This free chart of historic revenue and earnings should make that easy.
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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