Insider Buying: The iDreamSky Technology Holdings Limited (HKG:1119) Co-founder Just Bought CN¥686k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the iDreamSky Technology Holdings Limited (HKG:1119) Co-founder, Xiangyu Chen, recently bought HK$686k worth of stock, for HK$3.81 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for iDreamSky Technology Holdings

The Last 12 Months Of Insider Transactions At iDreamSky Technology Holdings

In fact, the recent purchase by Xiangyu Chen was the biggest purchase of iDreamSky Technology Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$3.90 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the iDreamSky Technology Holdings insiders decided to buy shares at close to current prices.

While iDreamSky Technology Holdings insiders bought shares during the last year, they didn't sell. 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 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

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. iDreamSky Technology Holdings insiders own 28% of the company, currently worth about HK$1.3b 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.

What Might The Insider Transactions At iDreamSky Technology Holdings Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about iDreamSky Technology Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing iDreamSky Technology Holdings. Case in point: We've spotted 2 warning signs for iDreamSky Technology Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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