CNT Group Limited (HKG:701) insiders' HK$4.1m purchase saw a boost of HK$29k after market cap rose HK$76m

Insiders who bought CNT Group Limited (HKG:701) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$76m as a result of the stock's 11% gain over the same period. Put another way, the original HK$4.1m acquisition is now worth HK$4.1m.

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.

See our latest analysis for CNT Group

CNT Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non Executive Director Ho Chuen Tsui for HK$460k worth of shares, at about HK$0.40 per share. That means that an insider was happy to buy shares at above the current price of HK$0.40. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ho Chuen Tsui was the only individual insider to buy during the last year.

Ho Chuen Tsui purchased 10.26m shares over the year. The average price per share was HK$0.40. 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!

CNT Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of CNT Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CNT Group insiders own 27% of the company, worth about HK$208m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CNT Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest CNT Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CNT Group. Our analysis shows 3 warning signs for CNT Group (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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, 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.