Insider Spends HK$11m Buying More Shares In Lion Rock Group

Those following along with Lion Rock Group Limited (HKG:1127) will no doubt be intrigued by the recent purchase of shares by Chuk Kin Lau, Executive Chairman & Compliance Officer of the company, who spent a stonking HK$11m on stock at an average price of HK$1.33. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 8.9%.

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The Last 12 Months Of Insider Transactions At Lion Rock Group

Notably, that recent purchase by Chuk Kin Lau is the biggest insider purchase of Lion Rock Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$1.37. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Lion Rock Group share holders is that insiders were buying at near the current price.

While Lion Rock Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Lion Rock Group

Lion Rock Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Lion Rock Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lion Rock Group insiders own about HK$263m worth of shares. That equates to 25% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Lion Rock Group Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Lion Rock Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lion Rock Group. Case in point: We've spotted 1 warning sign for Lion Rock Group you should be aware of.

But note: Lion Rock 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.