Cheung Shing Ng Bought 3.9% More Shares In Computer And Technologies Holdings

Even if it's not a huge purchase, we think it was good to see that Cheung Shing Ng, the Founder & Chairman of Computer And Technologies Holdings Limited (HKG:46) recently shelled out HK$533k to buy stock, at HK$1.96 per share. Although the purchase is not a big one, increasing their shareholding by only 3.9%, it can be interpreted as a good sign.

View our latest analysis for Computer And Technologies Holdings

The Last 12 Months Of Insider Transactions At Computer And Technologies Holdings

In fact, the recent purchase by Cheung Shing Ng was the biggest purchase of Computer And Technologies Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$1.96 (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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Cheung Shing Ng.

Cheung Shing Ng bought 576.00k shares over the last 12 months at an average price of HK$2.01. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.

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. 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 20% of Computer And Technologies Holdings shares, worth about HK$96m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Computer And Technologies Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Computer And Technologies Holdings insiders are well aligned, and that they may think the share price is too low. 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, Computer And Technologies Holdings has 3 warning signs (and 1 which is concerning) we think you should know about.

But note: Computer And Technologies Holdings 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.