Insiders of Cathay Group Holdings Getting Good Value On Their CN¥28.1m Investment

Cathay Group Holdings Inc. (HKG:1981) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 15% resulting in a HK$227m addition to the company’s market value. In other words, the original CN¥28.1m purchase is now worth CN¥32.9m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Cathay Group Holdings

Cathay Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder Shulin Pu for HK$2.7m worth of shares, at about HK$0.94 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Shulin Pu purchased 31.30m shares over the year. The average price per share was HK$0.90. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Cathay Group Holdings

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cathay Group Holdings insiders own 74% of the company, currently worth about HK$1.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Cathay Group Holdings Insiders?

The fact that there have been no Cathay Group Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Cathay Group Holdings insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Cathay Group Holdings, you should check out this free report on analyst forecasts for the company.

Of course Cathay Group Holdings 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.