Bullish Convenience Retail Asia Insider Buying Worth HK$9.26m Yet To Pay Off

Insiders who bought HK$9.26m worth of Convenience Retail Asia Limited's (HKG:831) stock at an average buy price of HK$0.72 over the last year may be disappointed by the recent 10% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth HK$4.42m which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Convenience Retail Asia

The Last 12 Months Of Insider Transactions At Convenience Retail Asia

The Non-Executive Chairman Kwok-Lun Fung made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.3m worth of shares at a price of HK$0.66 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.34). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Kwok-Lun Fung.

Kwok-Lun Fung purchased 12.81m shares over the year. The average price per share was HK$0.72. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Convenience Retail Asia is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

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. From our data, it seems that Convenience Retail Asia insiders own 11% of the company, worth about HK$30m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Convenience Retail Asia Tell Us?

It doesn't really mean much that no insider has traded Convenience Retail Asia shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Convenience Retail Asia insiders are doubting the company, and they do own shares. 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. Be aware that Convenience Retail Asia is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course Convenience Retail Asia 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.