Insider Purchases Worth CN¥9.49m See Losses As Comtec Solar Systems Group Market Value Drops To HK$71m

Insiders who bought CN¥9.49m worth of Comtec Solar Systems Group Limited's (HKG:712) stock at an average buy price of CN¥0.10 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CN¥6.05m which is not ideal.

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

In the last twelve months, the biggest single purchase by an insider was when insider Loong Cheong Chang bought HK$6.2m worth of shares at a price of HK$0.10 per share. That means that even when the share price was higher than HK$0.067 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Loong Cheong Chang was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid HK$9.5m for 90.37m shares. But they sold 36.07m shares for HK$3.8m. In the last twelve months there was more buying than selling by Comtec Solar Systems Group insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Comtec Solar Systems Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Comtec Solar Systems Group. Specifically, insider Loong Cheong Chang ditched HK$3.8m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. Comtec Solar Systems Group insiders own 56% of the company, currently worth about HK$40m 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 Comtec Solar Systems Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 5 warning signs for Comtec Solar Systems Group (2 are concerning!) and we strongly recommend you look at these before investing.

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 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.