Those following along with Desun Real Estate Investment Services Group Co., Ltd. (HKG:2270) will no doubt be intrigued by the recent purchase of shares by Kang Zou, Non-Executive Director of the company, who spent a stonking HK$25m on stock at an average price of HK$1.12. While that only increased their holding size by 6.1%, it is still a big swing by our standards.
View our latest analysis for Desun Real Estate Investment Services Group
Notably, that recent purchase by Kang Zou is the biggest insider purchase of Desun Real Estate Investment Services Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$1.13. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Desun Real Estate Investment Services Group insider decided to buy shares at close to current prices. Kang Zou was the only individual insider to buy during the last year.
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!
Desun Real Estate Investment Services Group 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Desun Real Estate Investment Services Group insiders own about HK$474m worth of shares (which is 68% 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.
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Desun Real Estate Investment Services Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Desun Real Estate Investment Services Group. Every company has risks, and we've spotted 2 warning signs for Desun Real Estate Investment Services Group (of which 1 can't be ignored!) you should know about.
But note: Desun Real Estate Investment Services Group 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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