Some of the losses seen by insiders who purchased HK$41m worth of DL Holdings Group Limited (HKG:1709) shares over the past year were recovered after the stock increased by 13% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled HK$1.6m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for DL Holdings Group

The Last 12 Months Of Insider Transactions At DL Holdings Group

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Honorary Chairman Xinrong Jiang bought HK$12m worth of shares at a price of HK$2.92 per share. That means that an insider was happy to buy shares at above the current price of HK$2.78. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Xinrong Jiang.

Xinrong Jiang bought a total of 14.10m shares over the year at an average price of HK$2.89. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does DL Holdings Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that DL Holdings Group insiders own 50% of the company, worth about HK$2.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At DL Holdings Group Tell Us?

The fact that there have been no DL Holdings Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, DL Holdings Group insiders feel good about the company's future. 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. To that end, you should learn about the 2 warning signs we've spotted with DL Holdings Group (including 1 which doesn't sit too well with us).

But note: DL Holdings 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.