Possible Turnaround For Shanyu Group Holdings Insiders, Still Down HK$4.0m

Insiders who bought HK$6.78m worth of Shanyu Group Holdings Company Limited (HKG:8245) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled HK$4.0m since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Shanyu Group Holdings

The Last 12 Months Of Insider Transactions At Shanyu Group Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Director Yuanyan Zhu for HK$6.8m worth of shares, at about HK$0.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.076). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yuanyan Zhu was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Shanyu Group Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Shanyu Group Holdings insiders own about HK$29m worth of shares (which is 45% 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.

What Might The Insider Transactions At Shanyu Group Holdings Tell Us?

The fact that there have been no Shanyu Group Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Shanyu Group Holdings insiders feel good about the company's future. 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. At Simply Wall St, we've found that Shanyu Group Holdings has 6 warning signs (4 are significant!) that deserve your attention before going any further with your analysis.

But note: Shanyu Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.