Steve Leung Design Group Limited (HKG:2262) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a HK$24m addition to the company’s market value. In other words, the original HK$5.04m purchase is now worth HK$12.2m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Steve Leung Design Group
The Last 12 Months Of Insider Transactions At Steve Leung Design Group
Over the last year, we can see that the biggest insider purchase was by insider Yaohua He for HK$5.0m worth of shares, at about HK$0.08 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.19), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Steve Leung Design Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It appears that Steve Leung Design Group insiders own 32% of the company, worth about HK$71m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Steve Leung Design Group Tell Us?
It doesn't really mean much that no insider has traded Steve Leung Design Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Steve Leung Design Group and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Steve Leung Design Group has 2 warning signs (and 1 which is potentially serious) we think you should know about.
Of course Steve Leung Design Group 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.