Legend Strategy International Holdings Group Non-Executive Chairman Acquires 100% More Stock

Legend Strategy International Holdings Group Company Limited (HKG:1355) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Fuer Yuan, recently bought a whopping HK$24m worth of stock, at a price of HK$0.088. That increased their holding by a full 100%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

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The Last 12 Months Of Insider Transactions At Legend Strategy International Holdings Group

In fact, the recent purchase by Fuer Yuan was the biggest purchase of Legend Strategy International Holdings Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.091 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices. Notably Fuer Yuan was also the biggest seller.

Happily, we note that in the last year insiders paid HK$32m for 327.56m shares. But insiders sold 52.02m shares worth HK$13m. In the last twelve months there was more buying than selling by Legend Strategy International Holdings Group insiders. The average buy price was around HK$0.097. These transactions suggest that insiders have considered the current price attractive. 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!

View our latest analysis for Legend Strategy International Holdings Group

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).

Does Legend Strategy 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. We usually like to see fairly high levels of insider ownership. Legend Strategy International Holdings Group insiders own about HK$28m worth of shares (which is 57% 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 Legend Strategy International Holdings Group Tell Us?

It's certainly positive to see the recent insider purchases. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Legend Strategy International Holdings Group. That's what I like to see! 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. Our analysis shows 5 warning signs for Legend Strategy International Holdings Group (3 are a bit concerning!) and we strongly recommend you look at them before investing.

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 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.