Insiders saw their HK$27m investment bump up to HK$28m after C C Land Holdings Limited (HKG:1224) soared 8.0% last week

By
Simply Wall St
Published
March 21, 2022
SEHK:1224
Source: Shutterstock

C C Land Holdings Limited (HKG:1224) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 8.0% resulting in a HK$544m addition to the company’s market value. As a result, the stock they originally bought for HK$27m is now worth HK$28m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for C C Land Holdings

C C Land Holdings Insider Transactions Over The Last Year

The Chairman of the Board Chung Kiu Cheung made the biggest insider purchase in the last 12 months. That single transaction was for HK$18m worth of shares at a price of HK$1.81 each. That implies that an insider found the current price of HK$1.90 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the C C Land Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Chung Kiu Cheung.

Chung Kiu Cheung bought a total of 14.48m shares over the year at an average price of HK$1.83. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:1224 Insider Trading Volume March 21st 2022

C C Land Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of C C Land Holdings

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. It's great to see that C C Land Holdings insiders own 70% of the company, worth about HK$5.2b. 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 C C Land Holdings Insider Transactions Indicate?

The fact that there have been no C C Land Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like C C Land Holdings insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for C C Land Holdings (1 is potentially serious) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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