Insiders Sold CN¥5.7m Of Comtec Solar Systems Group Stock Possibly Sending Warning Sign

Last week, Comtec Solar Systems Group Limited's (HKG:712) stock jumped 11%, but insiders who sold CN¥5.7m worth of stock in over the past year are likely to be in a better position. Selling at an average price of CN¥0.12, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Comtec Solar Systems Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Loong Cheong Chang, for HK$3.8m worth of shares, at about HK$0.10 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.079. So it may not shed much light on insider confidence at current levels.

Insiders in Comtec Solar Systems Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Comtec Solar Systems Group

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Comtec Solar Systems Group Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Comtec Solar Systems Group insiders own 51% of the company, worth about HK$42m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Comtec Solar Systems Group Tell Us?

It doesn't really mean much that no insider has traded Comtec Solar Systems Group shares in the last quarter. While we feel good about high insider ownership of Comtec Solar Systems Group, we can't say the same about the selling of shares. 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. Our analysis shows 3 warning signs for Comtec Solar Systems Group (2 are concerning!) and we strongly recommend you look at them before investing.

But note: Comtec Solar Systems Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.