Dawei Chang of LVGEM (China) Real Estate Investment Company Limited (HKG:95) Just Spent CN¥323m On Shares

Simply Wall St
January 14, 2022
Source: Shutterstock

LVGEM (China) Real Estate Investment Company Limited (HKG:95) shareholders (or potential shareholders) will be happy to see that insider Dawei Chang recently bought a whopping HK$323m worth of stock, at a price of HK$1.45. That purchase boosted their holding by 299%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for LVGEM (China) Real Estate Investment

LVGEM (China) Real Estate Investment Insider Transactions Over The Last Year

Notably, that recent purchase by Dawei Chang is the biggest insider purchase of LVGEM (China) Real Estate Investment shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$1.33. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

LVGEM (China) Real Estate Investment insiders may have bought shares in the last year, but they didn't sell any. 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!

SEHK:95 Insider Trading Volume January 14th 2022

LVGEM (China) Real Estate Investment is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of LVGEM (China) Real Estate Investment

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that LVGEM (China) Real Estate Investment insiders own 72% of the company, worth about HK$4.9b. 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 Does This Data Suggest About LVGEM (China) Real Estate Investment Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest LVGEM (China) Real Estate Investment insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with LVGEM (China) Real Estate Investment (including 2 which can't be ignored).

Of course LVGEM (China) Real Estate Investment 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.