Over the last year, a good number of insiders have significantly increased their holdings in Dragon Victory International Limited (NASDAQ:LYL). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Dragon Victory International

The Last 12 Months Of Insider Transactions At Dragon Victory International

In the last twelve months, the biggest single sale by an insider was when the insider, Hongyu Zhang, sold US$3.0m worth of shares at a price of US$2.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$1.41. So it may not shed much light on insider confidence at current levels. Hongyu Zhang was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 1.72m shares for US$3.4m. But they sold 1.48m shares for US$3.0m. Overall, Dragon Victory International insiders were net buyers during the last year. 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!

Dragon Victory International 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.

Insider Ownership of Dragon Victory International

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Dragon Victory International insiders own 29% of the company, worth about US$7.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Dragon Victory International Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Dragon Victory International and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dragon Victory International. Our analysis shows 5 warning signs for Dragon Victory International (3 are a bit concerning!) and we strongly recommend you look at them before investing.