Those following along with Shenglong Splendecor International Limited (HKG:8481) will no doubt be intrigued by the recent purchase of shares by Yingming Sheng, CEO & Chairman of the company, who spent a stonking HK$6.5m on stock at an average price of HK$0.20. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.

See our latest analysis for Shenglong Splendecor International

Shenglong Splendecor International Insider Transactions Over The Last Year

Notably, that recent purchase by Yingming Sheng is the biggest insider purchase of Shenglong Splendecor International shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.19). 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. 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. Yingming Sheng was the only individual insider to buy shares in the last twelve months.

Yingming Sheng bought 63.32m shares over the last 12 months at an average price of HK$0.19. 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!

Shenglong Splendecor International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Shenglong Splendecor International Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Shenglong Splendecor International insiders own 60% of the company, currently worth about HK$58m based on the recent share price. 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 Does This Data Suggest About Shenglong Splendecor International Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Shenglong Splendecor International. That's what I like to see! While we like knowing 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. To that end, you should learn about the 3 warning signs we've spotted with Shenglong Splendecor International (including 1 which makes us a bit uncomfortable).

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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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.