S-Enjoy Service Group Up 13%, But Some Insiders Miss Out

While S-Enjoy Service Group Co., Limited (HKG:1755) shareholders have enjoyed a good week with stock up 13%, they need remain vigilant. The fact that insiders chose to dispose of CN¥588k worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for S-Enjoy Service Group

S-Enjoy Service Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the COO & Executive Director, Xinli Gao, sold HK$444k worth of shares at a price of HK$6.09 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$4.02. So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in S-Enjoy Service Group than they bought, over the last year. 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At S-Enjoy Service Group Have Bought Stock Recently

There was some insider buying at S-Enjoy Service Group over the last quarter. Chairman Xiaoming Qi bought HK$327k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Insider Ownership Of S-Enjoy Service Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that S-Enjoy Service Group insiders own 69% of the company, worth about HK$2.4b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At S-Enjoy Service Group Tell Us?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that S-Enjoy Service Group 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 that end, you should learn about the 2 warning signs we've spotted with S-Enjoy Service Group (including 1 which is potentially serious).

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.