Have CA Cultural Technology Group Limited (HKG:1566) Insiders Been Selling Their Stock?

Anyone interested in CA Cultural Technology Group Limited (HKG:1566) should probably be aware that a company insider, Den Fung Or, recently divested HK$1.5m worth of shares in the company, at an average price of HK$1.92 each. On the bright side, that sale was only 3.3% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for CA Cultural Technology Group

CA Cultural Technology Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Xiangsong Zhuang, for HK$228m worth of shares, at about HK$2.10 per share. So what is clear is that an insider saw fit to sell at around the current price of HK$1.93. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Notably Xiangsong Zhuang was also the biggest buyer, having purchased HK$37m worth of shares.

All up, insiders sold more shares in CA Cultural Technology Group than they bought, over the last year. They sold for an average price of about HK$2.10. It's not ideal to see that insiders have sold at around the current price. But we don't put too much weight on the insider selling, since sellers could have personal reasons. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that CA Cultural Technology Group insiders own 43% of the company, worth about HK$802m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The CA Cultural Technology Group Insider Transactions Indicate?

Unfortunately, there has been more insider selling of CA Cultural Technology Group stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since CA Cultural Technology Group is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CA Cultural Technology Group. Every company has risks, and we've spotted 6 warning signs for CA Cultural Technology Group (of which 1 is significant!) you should know about.

But note: CA Cultural Technology 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, but not derivative transactions.

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