Bullish Comtec Solar Systems Group Insider Buying Worth CN¥17m Yet To Pay Off

The recent 10% drop in Comtec Solar Systems Group Limited's (HKG:712) stock could come as a blow to insiders who purchased CN¥17m worth of stock at an average buy price of CN¥0.16 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CN¥12m, which is not what they expected.

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 Comtec Solar Systems Group

Comtec Solar Systems Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Jun Wu for HK$10m worth of shares, at about HK$0.16 per share. That means that an insider was happy to buy shares at above the current price of HK$0.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Comtec Solar Systems Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 growing companies that insiders are buying.

Insiders At Comtec Solar Systems Group Have Bought Stock Recently

It's good to see that Comtec Solar Systems Group insiders have made notable investments in the company's shares. In total, insiders bought HK$17m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Comtec Solar Systems Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Comtec Solar Systems Group insiders own 52% of the company, worth about HK$50m. 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 Comtec Solar Systems Group Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Comtec Solar Systems Group insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Comtec Solar Systems Group. When we did our research, we found 4 warning signs for Comtec Solar Systems Group (1 shouldn't be ignored!) that we believe deserve your full attention.

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, but not derivative transactions.

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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.