Kwong Yuk Li Is The Chairman of Dingyi Group Investment Limited (HKG:508) And Just Spent HK$197k On Shares

Even if it's not a huge purchase, we think it was good to see that Kwong Yuk Li, the Chairman of Dingyi Group Investment Limited (HKG:508) recently shelled out HK$197k to buy stock, at HK$0.11 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Dingyi Group Investment

The Last 12 Months Of Insider Transactions At Dingyi Group Investment

In fact, the recent purchase by Chairman Kwong Yuk Li was not their only trade of Dingyi Group Investment shares this year. Earlier in the year, they sold shares at a price ofHK$0.031 per share in a -HK$301k transaction. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.11. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 0.3% of Kwong Yuk Li's stake.

Kwong Yuk Li sold a total of 18.77m shares over the year at an average price of HK$0.033. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Dingyi Group Investment Boast High 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. Dingyi Group Investment insiders own about HK$361m worth of shares (which is 44% 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 Dingyi Group Investment Tell Us?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Dingyi Group Investment insiders are fairly aligned, and optimistic. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Dingyi Group Investment.

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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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