Dragon Rise Group Holdings Insiders Land Bargain With Gains Of HK$104m
Insiders who bought Dragon Rise Group Holdings Limited (HKG:6829) in the last 12 months may probably not pay attention to the stock's recent 12% drop. After taking the recent loss into consideration, the HK$20.9m worth of stock they bought is now worth HK$125.1m, indicating that their investment yielded a positive return.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Dragon Rise Group Holdings Insider Transactions Over The Last Year
The Founder Yuk-Kit Yip made the biggest insider purchase in the last 12 months. That single transaction was for HK$21m worth of shares at a price of HK$0.20 each. Even though the purchase was made at a significantly lower price than the recent price (HK$1.20), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
See our latest analysis for Dragon Rise Group Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Dragon Rise Group Holdings insiders own 67% of the company, currently worth about HK$232m 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 Dragon Rise Group Holdings Tell Us?
The fact that there have been no Dragon Rise Group Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Dragon Rise Group Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dragon Rise Group Holdings. Every company has risks, and we've spotted 3 warning signs for Dragon Rise Group Holdings (of which 2 are significant!) you should know about.
Of course Dragon Rise Group 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 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.