Whilst it may not be a huge deal, we thought it was good to see that the S-Enjoy Service Group Co., Limited (HKG:1755) Chairman, Xiaoming Qi, recently bought CN¥302k worth of stock, for CN¥6.03 per share. That might not be a big purchase but it only increased their holding by 5%, and could be interpreted as a good sign.
S-Enjoy Service Group Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman Xiaoming Qi was not the only time they bought S-Enjoy Service Group shares this year. Earlier in the year, they paid HK$5.92 per share in a HK$5.9m purchase. So it’s clear an insider wanted to buy, at around the current price, which is HK$6.58. 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 S-Enjoy Service Group insiders decided to buy shares at close to current prices.
In the last twelve months insiders paid HK$6.6m for 1.1m shares purchased. S-Enjoy Service Group insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does S-Enjoy Service Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. S-Enjoy Service Group insiders own 73% of the company, currently worth about HK$4.0b based on the recent share price. 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 S-Enjoy Service Group Tell Us?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about S-Enjoy Service Group. Nice! Of course, the future is what matters most. So if you are interested in S-Enjoy Service Group, you should check out this free report on analyst forecasts for the company.
But note: S-Enjoy Service 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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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.