China Uptown Group Insiders Enjoying CN¥8.8m Appreciation On CN¥22.6m Investment
China Uptown Group Company Limited (HKG:2330) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 19% resulting in a HK$14m addition to the company’s market value. As a result, the stock they originally bought for CN¥22.6m is now worth CN¥31.4m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At China Uptown Group
The insider Hui Chen made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.8m worth of shares at a price of HK$0.18 each. That means that an insider was happy to buy shares at around the current price of HK$0.19. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for China Uptown Group share holders is that insiders were buying at near the current price.
While China Uptown Group insiders bought shares during the last year, they didn't sell. Their average price was about HK$0.14. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for China Uptown Group
China Uptown Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
China Uptown Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at China Uptown Group. In total, insiders bought HK$14m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does China Uptown Group 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. China Uptown Group insiders own about HK$50m worth of shares (which is 57% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At China Uptown Group Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Uptown Group. Looks promising! 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 instance, we've identified 3 warning signs for China Uptown Group (2 can't be ignored) you should be aware of.
Of course China Uptown Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.