Insiders In CMGE Technology Group Still Down 54% On CN¥6.17m Investment

Insiders who bought CN¥6.17m worth of CMGE Technology Group Limited (HKG:302) stock in the last year recovered part of their losses as the stock rose by 14% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CN¥3.3m since the time of purchase.

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

View our latest analysis for CMGE Technology Group

The Last 12 Months Of Insider Transactions At CMGE Technology Group

The Executive Chairman of Board & CEO Jian Xiao made the biggest insider purchase in the last 12 months. That single transaction was for HK$2.8m worth of shares at a price of HK$2.47 each. That means that even when the share price was higher than HK$1.15 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jian Xiao.

Jian Xiao bought a total of 2.49m shares over the year at an average price of HK$2.48. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.7% of CMGE Technology Group shares, worth about HK$244m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At CMGE Technology Group Tell Us?

It doesn't really mean much that no insider has traded CMGE Technology Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like CMGE Technology Group insiders think the business has merit. Of course, the future is what matters most. So if you are interested in CMGE Technology Group, you should check out this free report on analyst forecasts for the company.

Of course CMGE Technology Group 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.