Those following along with Shanghai Realway Capital Assets Management Co., Ltd. (HKG:1835) will no doubt be intrigued by the recent purchase of shares by insider Lei Zhu, who spent a stonking HK$13m on stock at an average price of HK$4.00. That increased their holding by a full 864%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Shanghai Realway Capital Assets Management

The Last 12 Months Of Insider Transactions At Shanghai Realway Capital Assets Management

In fact, the recent purchase by Lei Zhu was the biggest purchase of Shanghai Realway Capital Assets Management shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$3.96 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing 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. Lei Zhu was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Shanghai Realway Capital Assets Management 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 Shanghai Realway Capital Assets Management

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Shanghai Realway Capital Assets Management insiders own 82% of the company, worth about HK$499m. 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 Shanghai Realway Capital Assets Management Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shanghai Realway Capital Assets Management. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shanghai Realway Capital Assets Management. At Simply Wall St, we've found that Shanghai Realway Capital Assets Management has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.