Insiders Of Coolpoint Innonism Holding Reap Rewards After Their Investment Jumps Another HK$5.0m

Coolpoint Innonism Holding Limited (HKG:8040) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a HK$14m rise in the company's market capitalisation, translating to a gain of 40% on their initial investment. As a result, the stock they originally bought for HK$12.6m is now worth HK$17.6m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Coolpoint Innonism Holding

In the last twelve months, the biggest single purchase by an insider was when insider Chi Hung Poon bought HK$12m worth of shares at a price of HK$0.25 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.35), 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.

Coolpoint Innonism Holding insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Coolpoint Innonism Holding

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Insider Ownership Of Coolpoint Innonism Holding

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Coolpoint Innonism Holding insiders own 40% of the company, currently worth about HK$48m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Coolpoint Innonism Holding Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Coolpoint Innonism Holding insiders think the business has merit. 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. At Simply Wall St, we've found that Coolpoint Innonism Holding has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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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.