Bullish China Uptown Group Insiders Rewarded As Their Investment Rises To CN¥23.3m
Last week, China Uptown Group Company Limited (HKG:2330) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a HK$16m increase in the company's market worth, implying a 72% gain on their initial purchase. As a result, their original purchase of CN¥13.5m worth of stock is now worth CN¥23.3m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At China Uptown Group
The insider Hui Chen made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.8m worth of shares at a price of HK$0.18 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.31. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
China Uptown Group insiders may have bought shares in the last year, but they didn't sell any. 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!
See our latest analysis for China Uptown 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).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Uptown Group insiders own 57% of the company, currently worth about HK$80m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At China Uptown Group Tell Us?
The fact that there have been no China Uptown Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like China Uptown Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Uptown Group. For example, China Uptown Group has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
But note: China Uptown Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.