Insiders At Creative China Holdings See Good Returns After Buying Stock Worth CN¥19.1m

Insiders who purchased Creative China Holdings Limited (HKG:8368) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. After accounting for the recent loss, the CN¥19.1m worth of shares they purchased is now worth CN¥23.4m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Creative China Holdings

Creative China Holdings Insider Transactions Over The Last Year

The insider Yu Yuan Ang made the biggest insider purchase in the last 12 months. That single transaction was for HK$19m worth of shares at a price of HK$0.53 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Creative China Holdings insiders own 44% of the company, currently worth about HK$166m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Creative China Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Creative China Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Creative China Holdings insiders think the business has merit. 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 3 warning signs for Creative China Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.

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 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.