With China Carbon Neutral Development Group Up 11%, Insider Buyers Count Their Returns

China Carbon Neutral Development Group Limited (HKG:1372) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a HK$77m rise in the company's market capitalisation, translating to a gain of 237% on their initial investment. As a result, their original purchase of HK$3.50m worth of stock is now worth HK$11.8m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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China Carbon Neutral Development Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Honourable Chairman Zhi yuan Geng bought HK$3.5m worth of shares at a price of HK$0.35 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$1.18), we still think insider buying is a positive. 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.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for China Carbon Neutral Development Group

China Carbon Neutral Development Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that China Carbon Neutral Development Group insiders own 33% of the company, worth about HK$252m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At China Carbon Neutral Development Group Tell Us?

It doesn't really mean much that no insider has traded China Carbon Neutral Development Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like China Carbon Neutral Development Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. For instance, we've identified 3 warning signs for China Carbon Neutral Development Group (1 is a bit concerning) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.