Insiders Could Have Profited By Holding onto CT Vision S.L. (International) Holdings Shares Despite 16% Drop

Even though CT Vision S.L. (International) Holdings Limited (HKG:994) has fallen by 16% over the past week , insiders who sold HK$15m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of HK$0.49 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for CT Vision S.L. (International) Holdings

The Last 12 Months Of Insider Transactions At CT Vision S.L. (International) Holdings

Over the last year, we can see that the biggest insider sale was by the insider, Hongan Guo, for HK$15m worth of shares, at about HK$0.49 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.17. So it is hard to draw any strong conclusion from it. Hongan Guo was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does CT Vision S.L. (International) Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests CT Vision S.L. (International) Holdings insiders own 3.2% of the company, worth about HK$5.3m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Do The CT Vision S.L. (International) Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by CT Vision S.L. (International) Holdings insiders. And we're not picking up on high enough insider ownership to give us any comfort. 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 3 warning signs that you should run your eye over to get a better picture of CT Vision S.L. (International) Holdings.

Of course CT Vision S.L. (International) Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com