Digital China Holdings Limited (HKG:861) shareholders (or potential shareholders) will be happy to see that the Executive Chairman & CEO, Wei Guo, recently bought a whopping HK$4.3m worth of stock, at a price of HK$2.15. While that only increased their holding size by 0.9%, it is still a big swing by our standards.
See our latest analysis for Digital China Holdings
Digital China Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Chi Yu Yip, for HK$32m worth of shares, at about HK$3.01 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$2.16). So it may not shed much light on insider confidence at current levels. Chi Yu Yip was the only individual insider to sell shares in the last twelve months.
Wei Guo purchased 12.37m shares over the year. The average price per share was HK$2.84. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Digital China Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Digital China Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Digital China Holdings insiders own about HK$851m worth of shares (which is 24% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Digital China Holdings Insider Transactions Indicate?
It's certainly positive 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 Digital China Holdings 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. While conducting our analysis, we found that Digital China Holdings has 2 warning signs and it would be unwise to ignore them.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.