China Sci-Tech Industrial Investment Group Insiders Placed Bullish Bets Worth HK$3.97m

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of China Sci-Tech Industrial Investment Group Limited (HKG:339), that sends out a positive message to the company's shareholders.

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.

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The Last 12 Months Of Insider Transactions At China Sci-Tech Industrial Investment Group

In the last twelve months, the biggest single purchase by an insider was when insider Xuebo Wang bought HK$3.0m worth of shares at a price of HK$0.17 per share. That means that an insider was happy to buy shares at above the current price of HK$0.15. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While China Sci-Tech Industrial Investment Group insiders bought shares during the last year, they didn't sell. They paid about HK$0.15 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for China Sci-Tech Industrial Investment Group

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China Sci-Tech Industrial Investment Group Insiders Bought Stock Recently

It's good to see that China Sci-Tech Industrial Investment Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought HK$531k worth of shares. This is a positive in our book as it implies some confidence.

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. It appears that China Sci-Tech Industrial Investment Group insiders own 33% of the company, worth about HK$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At China Sci-Tech Industrial Investment Group Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest China Sci-Tech Industrial Investment Group insiders are well aligned, and that they may think the share price is too low. 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. While conducting our analysis, we found that China Sci-Tech Industrial Investment Group has 5 warning signs and it would be unwise to ignore these.

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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.