China Parenting Network Holdings Insider Buyers Net CN¥387k Despite 19% Stock Decline

Insiders who bought China Parenting Network Holdings Limited (HKG:1736) in the last 12 months may probably not pay attention to the stock's recent 19% drop. After taking the recent loss into consideration, the CN¥1.16m worth of stock they bought is now worth CN¥1.55m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for China Parenting Network Holdings

The Last 12 Months Of Insider Transactions At China Parenting Network Holdings

The insider Chiu Lan Tan made the biggest insider purchase in the last 12 months. That single transaction was for HK$755k worth of shares at a price of HK$0.05 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.067. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While China Parenting Network Holdings insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China Parenting Network Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Parenting Network Holdings insiders own about HK$8.7m worth of shares. That equates to 38% of the company. 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 Do The China Parenting Network Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think China Parenting Network Holdings insiders are doubting the company, and they do own shares. 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. Case in point: We've spotted 5 warning signs for China Parenting Network Holdings you should be aware of, and 4 of these don't sit too well with us.

But note: China Parenting Network Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.