Insiders At Success Dragon International Holdings See Good Returns After Buying Stock Worth HK$5.18m

Insiders who bought Success Dragon International Holdings Limited (HKG:1182) stock lover the last 12 months are probably not as affected by last week’s 11% loss. Even after accounting for the recent loss, the HK$5.18m worth of stock purchased by them is now worth HK$7.90m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Success Dragon International Holdings

The Executive Chairman Shiwei Liu made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.3m worth of shares at a price of HK$0.33 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.49. 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.

Shiwei Liu purchased 16.13m shares over the year. The average price per share was HK$0.32. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Success Dragon International Holdings

Success Dragon International Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Success Dragon 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. Success Dragon International Holdings insiders own 75% of the company, currently worth about HK$126m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Success Dragon International Holdings Tell Us?

It doesn't really mean much that no insider has traded Success Dragon International Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Success Dragon International Holdings insiders feel good about the company's future. While it's good to be aware of 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 help with this, we've discovered 3 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Success Dragon International Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.