Insiders seem to have made the most of their holdings by selling HK$55m worth of Renaissance Asia Silk Road Group Limited (HKG:274) stock at an average sell price of HK$0.39 during the past year. The company’s market cap plunged by HK$38m after price dropped by 10.0% last week but insiders were able to limit their loss to an extent.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
If you're not interested in researching 274's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!
Over the last year, we can see that the biggest insider sale was by the insider, Tao Wang, for HK$55m worth of shares, at about HK$0.39 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.23). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Tao Wang.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 24% of Renaissance Asia Silk Road Group shares, worth about HK$82m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Renaissance Asia Silk Road Group in the last 12 months are not very heartening. But it's good to see that insiders own shares in 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. To that end, you should learn about the 3 warning signs we've spotted with Renaissance Asia Silk Road Group (including 1 which makes us a bit uncomfortable).
Of course Renaissance Asia Silk Road 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.
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Find out whether Renaissance Asia Silk Road Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis. Find out more about our editorial guidelines and team.
Renaissance Asia Silk Road Group Limited, an investment holding company, engages in the exploration, development, and mining of gold in the People's Republic of China and Hong Kong.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
Read more about these checks in the individual report sections or in our analysis model.
Slightly overvalued with imperfect balance sheet.
Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis. Find out more about our editorial guidelines and team.
Renaissance Asia Silk Road Group Limited, an investment holding company, engages in the exploration, development, and mining of gold in the People's Republic of China and Hong Kong.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
Read more about these checks in the individual report sections or in our analysis model.
Slightly overvalued with imperfect balance sheet.
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