Insider Stock Buying Of China Sci-Tech Industrial Investment Group Delivers Return On HK$7.72m Investment

China Sci-Tech Industrial Investment Group Limited (HKG:339) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. Even after accounting for the recent loss, the HK$7.72m worth of stock purchased by them is now worth HK$8.49m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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

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

The insider Xuebo Wang made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.0m worth of shares at a price of HK$0.17 each. Even though the purchase was made at a significantly lower price than the recent price (HK$0.20), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While China Sci-Tech Industrial Investment Group insiders bought shares during the last year, they didn't sell. 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!

China Sci-Tech Industrial Investment Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. In total, insiders bought HK$6.4m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of China Sci-Tech Industrial Investment Group

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that China Sci-Tech Industrial Investment Group insiders own 52% of the company, worth about HK$33m. 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 China Sci-Tech Industrial Investment Group Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives 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 quite possibly think the share price is too low. One for the watchlist, at least! 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. To help with this, we've discovered 4 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in China Sci-Tech Industrial Investment Group.

Of course China Sci-Tech Industrial Investment Group 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.