Denox Environmental & Technology Holdings Insiders Enjoying CN¥12m Appreciation On CN¥24.3m Investment
Last week, Denox Environmental & Technology Holdings Limited (HKG:1452) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 24% last week, resulting in a HK$31m increase in the company's market worth, implying a 50% gain on their initial purchase. As a result, their original purchase of CN¥24.3m worth of stock is now worth CN¥36.5m.
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.
Denox Environmental & Technology Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Shu Zhao is the biggest insider purchase of Denox Environmental & Technology Holdings shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$0.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Denox Environmental & Technology Holdings
Denox Environmental & Technology Holdings 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Denox Environmental & Technology Holdings insiders own 66% of the company, worth about HK$104m. 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 Denox Environmental & Technology Holdings 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. 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 Denox Environmental & Technology Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Denox Environmental & Technology Holdings. For example, Denox Environmental & Technology Holdings has 4 warning signs (and 1 which is significant) we think you should know about.
Of course Denox Environmental & Technology Holdings 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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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.