Have Insiders Been Selling Citychamp Watch & Jewellery Group Limited (HKG:256) Shares This Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Citychamp Watch & Jewellery Group Limited (HKG:256), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Citychamp Watch & Jewellery Group

Citychamp Watch & Jewellery Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Tze Wa Fung, sold HK$964k worth of shares at a price of HK$1.53 per share. That means that even when the share price was below the current price of HK$1.59, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 46% of Tze Wa Fung's holding. Tze Wa Fung was the only individual insider to sell shares in the last twelve months.

Tze Wa Fung divested 1.40m shares over the last 12 months at an average price of HK$1.53. 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!

I will like Citychamp Watch & Jewellery Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Citychamp Watch & Jewellery Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Citychamp Watch & Jewellery Group insiders own 70% of the company, currently worth about HK$4.8b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Citychamp Watch & Jewellery Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Citychamp Watch & Jewellery Group, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Citychamp Watch & Jewellery Group. Every company has risks, and we've spotted 1 warning sign for Citychamp Watch & Jewellery Group you should know about.

But note: Citychamp Watch & Jewellery 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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This article by Simply Wall St is general in nature. 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.
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