Insider Buying: The S.A.S. Dragon Holdings Limited (HKG:1184) Founder Just Bought HK$1.5m Worth Of Shares

Investors who take an interest in S.A.S. Dragon Holdings Limited (HKG:1184) should definitely note that the Founder, Yuk-Lun Yim, recently paid HK$2.80 per share to buy HK$1.5m 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.

Check out our latest analysis for S.A.S. Dragon Holdings

S.A.S. Dragon Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Founder Yuk-Lun Yim was not the only time they bought S.A.S. Dragon Holdings shares this year. Earlier in the year, they paid HK$2.54 per share in a HK$4.8m purchase. So it's clear an insider wanted to buy, at around the current price, which is HK$2.95. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 bought shares at close to current prices. The only individual insider to buy over the last year was Yuk-Lun Yim.

Yuk-Lun Yim bought a total of 14.35m shares over the year at an average price of HK$2.51. 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!

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

Does S.A.S. Dragon Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. S.A.S. Dragon Holdings insiders own about HK$949m worth of shares (which is 54% of the company). 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 Do The S.A.S. Dragon Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about S.A.S. Dragon Holdings. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for S.A.S. Dragon Holdings (1 is a bit concerning!) that we believe deserve your full attention.

Of course S.A.S. Dragon 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, 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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