Shanghai Realway Capital Assets Management Up 19%, Insiders Still In The Red By CN¥4.8m

Insiders who purchased CN¥13m worth of Shanghai Realway Capital Assets Management Co., Ltd. (HKG:1835) shares over the past year recouped some of their losses after price gained 19% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CN¥4.8m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Shanghai Realway Capital Assets Management

Shanghai Realway Capital Assets Management Insider Transactions Over The Last Year

The insider Lei Zhu made the biggest insider purchase in the last 12 months. That single transaction was for HK$13m worth of shares at a price of HK$4.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.50). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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. The only individual insider to buy over the last year was Lei Zhu.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Shanghai Realway Capital Assets Management is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Shanghai Realway Capital Assets Management 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Shanghai Realway Capital Assets Management insiders own about HK$270m worth of shares (which is 85% 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.

What Might The Insider Transactions At Shanghai Realway Capital Assets Management Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Shanghai Realway Capital Assets Management insiders feel good about the company's future. 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. At Simply Wall St, we've found that Shanghai Realway Capital Assets Management has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Shanghai Realway Capital Assets Management may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.