Investors who take an interest in S-Enjoy Service Group Co., Limited (HKG:1755) should definitely note that the Chairman, Xiaoming Qi, recently paid HK$3.91 per share to buy HK$782k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.2%.
S-Enjoy Service Group Insider Transactions Over The Last Year
Notably, that recent purchase by Xiaoming Qi is the biggest insider purchase of S-Enjoy Service Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$4.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for S-Enjoy Service Group share holders is that an insider was buying at near the current price. Xiaoming Qi was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. S-Enjoy Service Group insiders own about HK$2.5b worth of shares (which is 69% 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.
What Might The Insider Transactions At S-Enjoy Service Group Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest S-Enjoy Service Group insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - S-Enjoy Service Group has 1 warning sign we think you should be aware of.
But note: S-Enjoy Service 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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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.
