Insider Buying: The Sheng Ye Capital Limited (HKG:6069) Chairman Just Bought CN¥1.6m Worth Of Shares

By
Simply Wall St
Published
May 22, 2021
SEHK:6069
Source: Shutterstock

Investors who take an interest in Sheng Ye Capital Limited (HKG:6069) should definitely note that the Chairman, Chi Fung Tung, recently paid HK$6.45 per share to buy HK$1.6m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Sheng Ye Capital

The Last 12 Months Of Insider Transactions At Sheng Ye Capital

Notably, that recent purchase by Chairman Chi Fung Tung was not the only time they bought Sheng Ye Capital shares this year. Earlier in the year, they paid HK$5.93 per share in a HK$3.0m purchase. That means that an insider was happy to buy shares at around the current price of HK$6.45. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Sheng Ye Capital insiders decided to buy shares at close to current prices.

In the last twelve months Sheng Ye Capital insiders were buying shares, but not selling. 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!

insider-trading-volume
SEHK:6069 Insider Trading Volume May 23rd 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Sheng Ye Capital

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Sheng Ye Capital insiders own 59% of the company, worth about HK$3.6b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Sheng Ye Capital Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Sheng Ye Capital. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sheng Ye Capital. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Sheng Ye Capital.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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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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