Whilst it may not be a huge deal, we thought it was good to see that the Deson Development International Holdings Limited (HKG:262) Co-Founder, Boen Sien Tjia, recently bought HK$56k worth of stock, for HK$0.10 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Deson Development International Holdings
Earlier in the year, Co-Founder Boen Sien Tjia paid HK$0.16 per share in a HK$288k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.10). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Boen Sien Tjia was the only individual insider to buy during the last year.
Boen Sien Tjia purchased 6.35m shares over the year. The average price per share was HK$0.16. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Deson Development International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Deson Development International Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Deson Development International Holdings insiders own about HK$64m worth of shares (which is 64% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Deson Development International Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Deson Development International Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Deson Development International Holdings. To that end, you should learn about the 3 warning signs we've spotted with Deson Development International Holdings (including 1 which is a bit unpleasant).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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