Even if it's not a huge purchase, we think it was good to see that Yaxian Zhou, the Chairman of the Board & President of Shenguan Holdings (Group) Limited (HKG:829) recently shelled out HK$554k to buy stock, at HK$0.35 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Shenguan Holdings (Group)

Shenguan Holdings (Group) Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman of the Board & President Yaxian Zhou was not their only acquisition of Shenguan Holdings (Group) shares this year. Earlier in the year, they paid HK$0.30 per share in a HK$1.4m purchase. That means that an insider was happy to buy shares at around the current price of HK$0.36. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Shenguan Holdings (Group) insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Yaxian Zhou.

Yaxian Zhou bought a total of 14.57m shares over the year at an average price of HK$0.31. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Shenguan Holdings (Group) is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Shenguan Holdings (Group) shares, worth about HK$144m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Shenguan Holdings (Group) Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shenguan Holdings (Group). That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Shenguan Holdings (Group).

But note: Shenguan Holdings (Group) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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