Some Pacific Legend Group Limited (HKG:8547) shareholders may be a little concerned to see that insider Wai Keung Cheung recently sold a substantial HK$5.3m worth of stock at a price of HK$0.078 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Pacific Legend Group

The Last 12 Months Of Insider Transactions At Pacific Legend Group

In fact, the recent sale by insider Wai Keung Cheung was not their only trade of Pacific Legend Group shares this year. Earlier in the year, they spent HK$5.5m to buy shares at HK$0.069 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.13. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and 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!

Pacific Legend 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.

Insider Ownership Of Pacific Legend Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Pacific Legend Group insiders own about HK$26m worth of shares. That equates to 15% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Pacific Legend Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for Pacific Legend Group (3 make us uncomfortable!) that we believe deserve your full attention.

But note: Pacific Legend Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.