Yingming Sheng Is The CEO & Chairman of Shenglong Splendecor International Limited (HKG:8481) And They Just Picked Up 2.3% More Shares

Investors who take an interest in Shenglong Splendecor International Limited (HKG:8481) should definitely note that the CEO & Chairman, Yingming Sheng, recently paid HK$0.24 per share to buy HK$1.4m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.3%.

See our latest analysis for Shenglong Splendecor International

Shenglong Splendecor International Insider Transactions Over The Last Year

The insider, Yunan Ren, made the biggest insider sale in the last 12 months. That single transaction was for HK$5.6m worth of shares at a price of HK$0.23 each. That means that even when the share price was below the current price of HK$0.23, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 42% of Yunan Ren's stake. The only individual insider seller over the last year was Yunan Ren.

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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Shenglong Splendecor International insiders own 61% of the company, worth about HK$72m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Shenglong Splendecor International Insiders?

The stark truth for Shenglong Splendecor International is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Shenglong Splendecor International and understanding them should be part of your investment process.

But note: Shenglong Splendecor International 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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