The Non-Executive Director of Dadi International Group Limited (HKG:8130), Xiongfeng Zhang, Just Bought 2.6% More Shares

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Potential Dadi International Group Limited (HKG:8130) shareholders may wish to note that the Non-Executive Director, Xiongfeng Zhang, recently bought HK$982k worth of stock, paying HK$0.18 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.6%.

See our latest analysis for Dadi International Group

Dadi International Group Insider Transactions Over The Last Year

In fact, the recent purchase by Non-Executive Director Xiongfeng Zhang was not their only acquisition of Dadi International Group shares this year. They previously made an even bigger purchase of HK$5.6m worth of shares at a price of HK$0.14 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.17. 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.

Over the last year, we can see that insiders have bought 86.52m shares worth HK$13m. On the other hand they divested 2120000 shares, for HK$392k. Overall, Dadi International Group insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:8130 Recent Insider Trading, December 22nd 2019
SEHK:8130 Recent Insider Trading, December 22nd 2019

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Dadi International Group 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. Insiders own 11% of Dadi International Group shares, worth about HK$71m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Dadi International Group Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Dadi International Group shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.