Insider Stock Buying Reaches US$990.2m On JS Global Lifestyle

Multiple insiders secured a larger position in JS Global Lifestyle Company Limited (HKG:1691) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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JS Global Lifestyle Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO, Chairman & Founder of Joyoung, CJ Xuning Wang, for HK$628m worth of shares, at about HK$1.55 per share. That means that even when the share price was below the current price of HK$2.26, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 18% of CJ Xuning Wang's holding. CJ Xuning Wang was the only individual insider to sell over the last year. Notably CJ Xuning Wang was also the biggest buyer, having purchased HK$990m worth of shares.

Over the last year, we can see that insiders have bought 639.14m shares worth HK$990m. But they sold 405.86m shares for HK$628m. Overall, JS Global Lifestyle insiders were net buyers during the last year. 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!

Check out our latest analysis for JS Global Lifestyle

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

Insider Ownership Of JS Global Lifestyle

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. JS Global Lifestyle insiders own 56% of the company, currently worth about HK$4.4b based on the recent share price. 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 Do The JS Global Lifestyle Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like JS Global Lifestyle insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of JS Global Lifestyle.

But note: JS Global Lifestyle 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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