Independent Non-Executive Director of DL Holdings Group Chun Liu Buys 96% More Shares

DL Holdings Group Limited (HKG:1709) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Director, Chun Liu, recently bought a whopping HK$8.4m worth of stock, at a price of HK$3.10. That increased their holding by a full 96%, 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 DL Holdings Group

In fact, the recent purchase by Chun Liu was the biggest purchase of DL Holdings Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$3.08 (the recent price), an insider wanted to purchase shares. 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 7.58m shares for HK$29m. On the other hand they divested 3.35m shares, for HK$13m. Overall, DL Holdings Group insiders were net buyers during the last year. The average buy price was around HK$3.78. 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for DL Holdings Group

DL Holdings 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.

Does DL Holdings Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. DL Holdings Group insiders own about HK$2.2b worth of shares (which is 49% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At DL Holdings Group Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest DL Holdings Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. At Simply Wall St, we found 1 warning sign for DL Holdings Group that deserve your attention before buying any shares.

Of course DL 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 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.