King Shiu Wong Is The Chairman & CEO of China Information Technology Development Limited (HKG:8178) And They Just Picked Up 482% More Shares

By
Simply Wall St
Published
April 12, 2022
SEHK:8178
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that King Shiu Wong, the Chairman & CEO of China Information Technology Development Limited (HKG:8178) recently shelled out HK$310k to buy stock, at HK$0.15 per share. Even though that isn't a massive buy, it did increase their holding by 482%, which is arguably a good sign.

See our latest analysis for China Information Technology Development

The Last 12 Months Of Insider Transactions At China Information Technology Development

In the last twelve months, the biggest single purchase by an insider was when insider Yat Lung Lee bought HK$10m worth of shares at a price of HK$0.50 per share. That means that even when the share price was higher than HK$0.15 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While China Information Technology Development insiders bought shares during the last year, they didn't sell. They paid about HK$0.35 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

insider-trading-volume
SEHK:8178 Insider Trading Volume April 12th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does China Information Technology Development Boast High 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. Insiders own 26% of China Information Technology Development shares, worth about HK$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The China Information Technology Development Insider Transactions Indicate?

It is good to see the recent insider purchase. 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. Insiders likely see value in China Information Technology Development shares, given these transactions (along with notable insider ownership of the company). While we like knowing 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 China Information Technology Development (2 are a bit concerning!) and we strongly recommend you look at them before investing.

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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