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Investors who take an interest in Shenglong Splendecor International Limited (HKG:8481) should definitely note that the CEO & Chairman, Yingming Sheng, recently paid CN¥0.33 per share to buy CN¥3.3m worth of the stock. Although the purchase only increased their holding by 4.2%, it is still a solid purchase in our view.
See our latest analysis for Shenglong Splendecor International
The Last 12 Months Of Insider Transactions At Shenglong Splendecor International
The insider, Yunan Ren, made the biggest insider sale in the last 12 months. That single transaction was for HK$7.8m worth of shares at a price of HK$0.39 each. So we know that an insider sold shares at around the present share price of HK$0.33. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Yunan Ren was the only individual insider to sell shares in the last twelve months.
Yunan Ren ditched 42500000 shares over the year. The average price per share was CN¥0.37. 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!
I will like Shenglong Splendecor International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Shenglong Splendecor International 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Shenglong Splendecor International insiders own 64% of the company, worth about HK$106m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Shenglong Splendecor International Tell Us?
The insider sales have outweighed the insider buying, at Shenglong Splendecor International, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Shenglong Splendecor International makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.