After a 11% dip, insiders are undoubtedly glad they sold CA Cultural Technology Group Limited (HKG:1566)

Over the past year, insiders sold HK$1.2m worth of CA Cultural Technology Group Limited (HKG:1566) stock at an average price of HK$0.14 per share allowing them to get the most out of their money. The company's market valuation decreased by HK$11m after the stock price dropped 11% over the past week, but insiders were spared from painful losses.

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.

Check out our latest analysis for CA Cultural Technology Group

The Last 12 Months Of Insider Transactions At CA Cultural Technology Group

The Founder, Heung Chung Chong, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.1m worth of shares at a price of HK$0.19 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.073). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Heung Chung Chong. Notably Heung Chung Chong was also the biggest buyer, having purchased HK$299k worth of shares.

Heung Chung Chong sold a total of 8.67m shares over the year at an average price of HK$0.14. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that CA Cultural Technology Group insiders own 45% of the company, worth about HK$39m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About CA Cultural Technology Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of CA Cultural Technology Group insider transactions don't fill us with confidence. 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. To that end, you should learn about the 4 warning signs we've spotted with CA Cultural Technology Group (including 3 which don't sit too well with us).

But note: CA Cultural Technology 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. 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.