Shiwei Liu Bought 1.7% More Shares In Success Dragon International Holdings

Potential Success Dragon International Holdings Limited (HKG:1182) shareholders may wish to note that the Executive Chairman, Shiwei Liu, recently bought HK$1.3m worth of stock, paying HK$0.33 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.7%.

View our latest analysis for Success Dragon International Holdings

Success Dragon International Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Shiwei Liu is the biggest insider purchase of Success Dragon International Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.33). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Shiwei Liu was the only individual insider to buy during the last year.

Shiwei Liu bought a total of 12.53m shares over the year at an average price of HK$0.29. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Success Dragon International Holdings insiders own 69% of the company, worth about HK$78m. 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 Success Dragon International Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Success Dragon International Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of 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. At Simply Wall St, we've found that Success Dragon International Holdings has 4 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course Success Dragon International Holdings 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.