China Sinostar Group Insiders Up HK$2.1m On HK$12.6m Investment
Insiders who bought China Sinostar Group Company Limited (HKG:485) in the last 12 months may probably not pay attention to the stock's recent 11% drop. Even after accounting for the recent loss, the HK$12.6m worth of stock purchased by them is now worth HK$14.7m or in other words, their investment continues to give good returns.
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.
China Sinostar Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Ning Liu bought HK$13m worth of shares at a price of HK$0.30 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.35. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for China Sinostar 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).
Insiders At China Sinostar Group Have Sold Stock Recently
The last quarter saw substantial insider selling of China Sinostar Group shares. In total, insider Ning Liu dumped HK$4.6m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. We usually like to see fairly high levels of insider ownership. Insiders own 12% of China Sinostar Group shares, worth about HK$11m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At China Sinostar Group Tell Us?
An insider sold China Sinostar Group shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. 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. Every company has risks, and we've spotted 4 warning signs for China Sinostar Group you should know about.
But note: China Sinostar 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.
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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.