Insiders who bought Success Dragon International Holdings Limited (HKG:1182) in the last 12 months may probably not pay attention to the stock's recent 13% drop. Reason being, despite the recent loss, insiders original purchase value of HK$5.18m is now worth HK$8.39m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Success Dragon International Holdings Insider Transactions Over The Last Year
The Executive Chairman Shiwei Liu made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.3m worth of shares at a price of HK$0.33 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.52. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Shiwei Liu bought 16.13m shares over the last 12 months at an average price of HK$0.32. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Success Dragon International Holdings
Success Dragon International Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Success Dragon International Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Success Dragon International Holdings insiders own about HK$133m worth of shares (which is 75% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Success Dragon International Holdings Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Success Dragon International Holdings insiders think the business has merit. While it's good to be aware of 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 4 warning signs for Success Dragon International Holdings you should be aware of.
Of course Success Dragon International Holdings 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.