Insiders who bought CN¥11m worth of KWG Living Group Holdings Limited (HKG:3913) stock in the last year have seen some of their losses recouped as the stock gained 42% last week. However, total losses seen by insiders are still CN¥4.9m but in since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for KWG Living Group Holdings

KWG Living Group Holdings Insider Transactions Over The Last Year

The Non-Executive Chairman Jianmin Kong made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.1m worth of shares at a price of HK$3.12 each. That means that even when the share price was higher than HK$2.02 (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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jianmin Kong.

Jianmin Kong purchased 3.00m shares over the year. The average price per share was HK$3.65. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

KWG Living Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does KWG Living Group Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. KWG Living Group Holdings insiders own 53% of the company, currently worth about HK$2.2b 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.

What Might The Insider Transactions At KWG Living Group Holdings Tell Us?

It doesn't really mean much that no insider has traded KWG Living Group Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like KWG Living Group Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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 4 warning signs for KWG Living Group Holdings (2 are a bit concerning!) that we believe deserve your full attention.

But note: KWG Living Group Holdings 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.