Those following along with Shangri-La Asia Limited (HKG:69) will no doubt be intrigued by the recent purchase of shares by Hui Kuok, Executive Chairman of the Board of the company, who spent a stonking HK$51m on stock at an average price of HK$6.04. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.

See our latest analysis for Shangri-La Asia

Shangri-La Asia Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman of the Board Hui Kuok was not the only time they bought Shangri-La Asia shares this year. Earlier in the year, they paid HK$11.10 per share in a HK$167m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$6.38). 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Shangri-La Asia insiders bought shares during the last year, they didn't sell. The average buy price was around HK$8.93. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Shangri-La Asia Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Shangri-La Asia insiders own 1.7% of the company, worth about HK$384m. 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 Shangri-La Asia Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shangri-La Asia. One for the watchlist, at least! 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. In terms of investment risks, we've identified 1 warning sign with Shangri-La Asia and understanding this should be part of your investment process.