Chairman of the Board & President of Shenguan Holdings (Group) Picks Up 3.9% More Stock

Shenguan Holdings (Group) Limited (HKG:829) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board & President, Yaxian Zhou, recently bought a whopping HK$4.5m worth of stock, at a price of HK$0.29. While that only increased their holding size by 3.9%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At Shenguan Holdings (Group)

Notably, that recent purchase by Yaxian Zhou is the biggest insider purchase of Shenguan Holdings (Group) shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.28). 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. The only individual insider to buy over the last year was Yaxian Zhou.

Yaxian Zhou bought 58.92m shares over the last 12 months at an average price of HK$0.23. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Shenguan Holdings (Group)

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Does Shenguan Holdings (Group) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 24% of Shenguan Holdings (Group) shares, worth about HK$217m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Shenguan Holdings (Group) 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. 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 Shenguan Holdings (Group) insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Shenguan Holdings (Group) you should be aware of, and 1 of them is a bit concerning.

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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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