China City Infrastructure Group Up 10%, Insider Buyers Are Up 19%
Insiders who bought China City Infrastructure Group Limited (HKG:2349) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$25m as a result of the stock's 10% gain over the same period. In other words, the original HK$22.2m purchase is now worth HK$26.5m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At China City Infrastructure Group
In the last twelve months, the biggest single purchase by an insider was when CEO & Chairman Chao Bo Li bought HK$15m worth of shares at a price of HK$0.075 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.085), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
China City Infrastructure 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for China City Infrastructure 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 City Infrastructure Group Have Bought Stock Recently
It's good to see that China City Infrastructure Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought HK$7.2m worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of China City Infrastructure Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that China City Infrastructure Group insiders own about HK$26m worth of shares (which is 9.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About China City Infrastructure Group Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in China City Infrastructure Group shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that China City Infrastructure Group is showing 2 warning signs in our investment analysis, and 1 of those is concerning...
But note: China City Infrastructure 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.