Kinetic Development Group Limited (HKG:1277) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 7.0% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of CN¥2.2m is now worth CN¥2.4m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Kinetic Development Group

The Last 12 Months Of Insider Transactions At Kinetic Development Group

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Wenzhong Ju for HK$896k worth of shares, at about HK$0.64 per share. That implies that an insider found the current price of HK$0.66 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Kinetic Development Group share holders is that insiders were buying at near the current price.

In the last twelve months Kinetic Development Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Kinetic Development 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.

Insiders At Kinetic Development Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Kinetic Development Group. We can see that Executive Chairman Wenzhong Ju paid HK$792k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Kinetic Development Group insiders own 74% of the company, currently worth about HK$4.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Kinetic Development Group Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Kinetic Development Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kinetic Development Group. You'd be interested to know, that we found 1 warning sign for Kinetic Development Group and we suggest you have a look.

Of course Kinetic Development 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, 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.