World Digital Economy Asset Group Insiders Enjoying HK$3.9m Appreciation On HK$14.2m Investment

World Digital Economy Asset Group Limited (HKG:3708) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a HK$23m rise in the company's market capitalisation, translating to a gain of 27% on their initial investment. In other words, the original HK$14.2m purchase is now worth HK$18.2m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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World Digital Economy Asset Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Zhilong Zhou bought HK$14m worth of shares at a price of HK$0.18 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.23), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for World Digital Economy Asset Group

World Digital Economy Asset Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of World Digital Economy Asset Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that World Digital Economy Asset Group insiders own 71% of the company, worth about HK$133m. 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 World Digital Economy Asset Group Insider Transactions Indicate?

It's certainly positive 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. When combined with notable insider ownership, these factors suggest World Digital Economy Asset Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing World Digital Economy Asset Group. Every company has risks, and we've spotted 3 warning signs for World Digital Economy Asset Group (of which 1 is a bit unpleasant!) you should know about.

Of course World Digital Economy Asset Group 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 of direct interests only, but not derivative transactions or indirect interests.

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