Chong Fai Jewellery Group Holdings Insiders Lose Out As Stock Sinks To HK$0.025

The recent price decline of 11% in Chong Fai Jewellery Group Holdings Company Limited's (HKG:8537) stock may have disappointed insiders who bought HK$3.50m worth of shares at an average price of HK$0.093 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth HK$937.5k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Chong Fai Jewellery Group Holdings

The Last 12 Months Of Insider Transactions At Chong Fai Jewellery Group Holdings

The insider JingXin Feng made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.5m worth of shares at a price of HK$0.093 each. That means that an insider was happy to buy shares at above the current price of HK$0.025. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. JingXin Feng was the only individual insider to buy 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. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Chong Fai Jewellery Group Holdings

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Chong Fai Jewellery Group Holdings insiders have about 5.0% of the stock, worth approximately HK$938k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Chong Fai Jewellery Group Holdings Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Chong Fai Jewellery Group Holdings insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chong Fai Jewellery Group Holdings. For example, Chong Fai Jewellery Group Holdings has 3 warning signs (and 2 which are significant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.