Those following along with JS Global Lifestyle Company Limited (HKG:1691) will no doubt be intrigued by the recent purchase of shares by CJ Xuning Wang, CEO, Chairman & Founder of Joyoung of the company, who spent a stonking HK$404m on stock at an average price of HK$1.52. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 16%.
View our latest analysis for JS Global Lifestyle
Notably, that recent purchase by CJ Xuning Wang is the biggest insider purchase of JS Global Lifestyle shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.69. 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.
In the last twelve months JS Global Lifestyle insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
JS Global Lifestyle 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.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. JS Global Lifestyle insiders own about HK$3.9b worth of shares (which is 67% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest JS Global Lifestyle insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. For example - JS Global Lifestyle has 3 warning signs we think you should be aware of.
Of course JS Global Lifestyle 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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