Hung Nang Choi Is The Executive Chairman of D&G Technology Holding Company Limited (HKG:1301) And They Just Spent CN¥365k On Shares

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Whilst it may not be a huge deal, we thought it was good to see that the D&G Technology Holding Company Limited (HKG:1301) Executive Chairman, Hung Nang Choi, recently bought HK$365k worth of stock, for HK$1.24 per share. However, we do note that it only increased their holding by 0.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for D&G Technology Holding

D&G Technology Holding Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman Hung Nang Choi was not the only time they bought D&G Technology Holding shares this year. Earlier in the year, they paid HK$1.27 per share in a HK$1.0m purchase. That means that even when the share price was higher than HK$1.25 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Hung Nang Choi was the only individual insider to buy shares in the last twelve months.

Hung Nang Choi bought 15.98m shares over the last 12 months at an average price of HK$1.32. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:1301 Recent Insider Trading April 7th 2020
SEHK:1301 Recent Insider Trading April 7th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of D&G Technology Holding

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. Our data indicates that D&G Technology Holding insiders own about HK$71m worth of shares (which is 9.1% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About D&G Technology Holding Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in D&G Technology Holding shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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. In terms of investment risks, we've identified 1 warning sign with D&G Technology Holding and understanding it should be part of your investment process.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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