Even if it's not a huge purchase, we think it was good to see that Hung Nang Choi, the Executive Chairman of D&G Technology Holding Company Limited (HKG:1301) recently shelled out HK$453k to buy stock, at HK$1.01 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
View our latest analysis for D&G Technology Holding
The Last 12 Months Of Insider Transactions At D&G Technology Holding
In fact, the recent purchase by Executive Chairman Hung Nang Choi was not their only acquisition of D&G Technology Holding shares this year. Earlier in the year, they paid HK$1.16 per share in a HK$929k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.09). 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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hung Nang Choi was the only individual insider to buy shares in the last twelve months.
Hung Nang Choi bought a total of 3.16m shares over the year at an average price of HK$1.08. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of D&G Technology Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that D&G Technology Holding insiders own 14% of the company, worth about HK$101m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About D&G Technology Holding Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest D&G Technology Holding insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of D&G Technology Holding.
Of course D&G Technology Holding 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.