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Trade Alert: The CEO & Executive Director Of Silver Grant International Holdings Group Limited (HKG:171), Jiajue Huang, Has Just Spent HK$950k Buying 37% More Shares

Investors who take an interest in Silver Grant International Holdings Group Limited (HKG:171) should definitely note that the CEO & Executive Director, Jiajue Huang, recently paid HK$1.01 per share to buy HK$950k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 37%.

See our latest analysis for Silver Grant International Holdings Group

The Last 12 Months Of Insider Transactions At Silver Grant International Holdings Group

In fact, the recent purchase by Jiajue Huang was the biggest purchase of Silver Grant International Holdings Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$1.00. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Jiajue Huang.

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Jiajue Huang bought a total of 2.07m shares over the year at an average price of HK$1.01. The chart below shows insider transactions (by 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!

SEHK:171 Recent Insider Trading May 28th 2020
SEHK:171 Recent Insider Trading May 28th 2020

Silver Grant International Holdings Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Silver Grant International Holdings Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about HK$2.6m worth of Silver Grant International Holdings Group shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.

So What Do The Silver Grant International Holdings Group Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Silver Grant International Holdings Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Silver Grant International Holdings Group. In terms of investment risks, we've identified 1 warning sign with Silver Grant International Holdings Group and understanding this should be part of your investment process.

Of course Silver Grant International Holdings Group 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, but not derivative transactions.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. 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. Thank you for reading.