DTXS Silk Road Investment Holdings Insiders Lose Out As Stock Sinks To HK$0.23

Insiders who acquired HK$1.42m worth of DTXS Silk Road Investment Holdings Company Limited's (HKG:620) stock at an average price of HK$0.58 in the past 12 months may be dismayed by the recent 10% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth HK$562.9k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At DTXS Silk Road Investment Holdings

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Jianzhong Lu bought HK$1.4m worth of shares at a price of HK$0.58 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.23). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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. Jianzhong Lu was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for DTXS Silk Road Investment Holdings

DTXS Silk Road Investment Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of DTXS Silk Road Investment Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that DTXS Silk Road Investment Holdings insiders own about HK$777k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We might be missing something but that seems like very low insider ownership.

So What Do The DTXS Silk Road Investment Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded DTXS Silk Road Investment Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more DTXS Silk Road Investment Holdings stock. 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. Case in point: We've spotted 4 warning signs for DTXS Silk Road Investment Holdings you should be aware of, and 2 of these are a bit concerning.

Of course DTXS Silk Road Investment Holdings 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.