The Non Executive Director of CNT Group Limited (HKG:701), Ho Chuen Tsui, Just Bought A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the CNT Group Limited (HKG:701) Non Executive Director, Ho Chuen Tsui, recently bought HK$124k worth of stock, for HK$0.37 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for CNT Group

The Last 12 Months Of Insider Transactions At CNT Group

Notably, that recent purchase by Non Executive Director Ho Chuen Tsui was not the only time they bought CNT Group shares this year. Earlier in the year, they paid HK$0.36 per share in a HK$302k purchase. That means that an insider was happy to buy shares at around the current price of HK$0.40. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for CNT Group share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Ho Chuen Tsui.

Ho Chuen Tsui bought 8.38m shares over the last 12 months at an average price of HK$0.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does CNT Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CNT Group insiders own 27% of the company, worth about HK$201m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About CNT Group Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive 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. When we did our research, we found 3 warning signs for CNT Group (1 is potentially serious!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

When trading CNT Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.