Non Executive Director Ho Chuen Tsui Just Bought A Handful Of Shares In CNT Group Limited (HKG:701)

Even if it's not a huge purchase, we think it was good to see that Ho Chuen Tsui, the Non Executive Director of CNT Group Limited (HKG:701) recently shelled out HK$427k to buy stock, at HK$0.40 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for CNT Group

The Last 12 Months Of Insider Transactions At CNT Group

Notably, that recent purchase by Ho Chuen Tsui is the biggest insider purchase of CNT Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.40. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Ho Chuen Tsui.

Ho Chuen Tsui bought 8.79m shares over the last 12 months at an average price of HK$0.36. 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!

CNT Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of CNT Group shares, worth about HK$184m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About CNT Group Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CNT Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CNT Group. Be aware that CNT Group is showing 3 warning signs in our investment analysis, and 1 of those is significant...

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. 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.
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