Bullish C&D International Investment Group Insiders Loaded Up On CN¥17.0m Of Stock

In the last year, multiple insiders have substantially increased their holdings of C&D International Investment Group Limited (HKG:1908) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for C&D International Investment Group

The Last 12 Months Of Insider Transactions At C&D International Investment Group

The Executive Director Meitan Tian made the biggest insider purchase in the last 12 months. That single transaction was for HK$8.5m worth of shares at a price of HK$12.85 each. That means that an insider was happy to buy shares at around the current price of HK$12.94. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for C&D International Investment Group share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid HK$17m for 1.32m shares. On the other hand they divested 942.00k shares, for HK$17m. Overall, C&D International Investment Group insiders were net buyers during the last year. 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!

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).

C&D International Investment Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at C&D International Investment Group. In total, insiders dumped HK$5.5m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does C&D International Investment Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 2.0% of C&D International Investment Group shares, worth about HK$522m. 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 C&D International Investment Group Insiders?

Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. 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. For example - C&D International Investment Group has 3 warning signs we think you should be aware of.

Of course C&D International Investment 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.