Insider Stock Buying Reaches HK$4.20m On Shenzhen International Holdings

In the last year, multiple insiders have substantially increased their holdings of Shenzhen International Holdings Limited (HKG:152) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Shenzhen International Holdings

Shenzhen International Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by CEO & Executive Director Zhengyu Liu was not their only acquisition of Shenzhen International Holdings shares this year. Earlier in the year, they paid HK$5.74 per share in a HK$4.0m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$6.74. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Shenzhen International Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Shenzhen International Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Shenzhen International Holdings Have Bought Stock Recently

There was some insider buying at Shenzhen International Holdings over the last quarter. CEO & Executive Director Zhengyu Liu purchased HK$216k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does Shenzhen International Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own HK$16m worth of Shenzhen International Holdings stock, about 0.1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Shenzhen International Holdings Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Shenzhen International Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shenzhen International Holdings. At Simply Wall St, we've found that Shenzhen International Holdings has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

But note: Shenzhen International 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.