Insider Buys Additional CN¥3.0m In iDreamSky Technology Holdings Stock

Investors who take an interest in iDreamSky Technology Holdings Limited (HKG:1119) should definitely note that the Co-founder, Xiangyu Chen, recently paid HK$2.75 per share to buy HK$3.0m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for iDreamSky Technology Holdings

iDreamSky Technology Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Xiangyu Chen is the biggest insider purchase of iDreamSky Technology Holdings shares that we've seen in the last year. That implies that an insider found the current price of HK$2.86 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

iDreamSky Technology Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

iDreamSky Technology Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does iDreamSky Technology Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that iDreamSky Technology Holdings insiders own 20% of the company, worth about HK$881m. 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 Does This Data Suggest About iDreamSky Technology Holdings Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest iDreamSky Technology Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 1 warning sign 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 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.