Some C&D International Investment Group Limited (HKG:1908) shareholders may be a little concerned to see that the Executive Director, Chengmin Zhao, recently sold a substantial HK$4.4m worth of stock at a price of HK$16.92 per share. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At C&D International Investment Group
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Meitan Tian for HK$10m worth of shares, at about HK$10.24 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$16.84. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
All up, insiders sold more shares in C&D International Investment Group than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for C&D International Investment Group
I will like C&D International Investment Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does C&D International Investment Group Boast High 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. It appears that C&D International Investment Group insiders own 2.0% of the company, worth about HK$671m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The C&D International Investment Group Insider Transactions Indicate?
Insiders haven't bought C&D International Investment Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of C&D International Investment Group.
But note: C&D International Investment 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.