Insiders of CA Cultural Technology Group Getting Good Value On Their HK$94.1m Investment
CA Cultural Technology Group Limited (HKG:1566) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 78% resulting in a HK$175m addition to the company’s market value. Put another way, the original HK$94.1m acquisition is now worth HK$1.79b.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
CA Cultural Technology Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Kenichi Yanase bought HK$94m worth of shares at a price of HK$0.18 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$3.38), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
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!
Check out our latest analysis for CA Cultural Technology Group
CA Cultural Technology Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does CA Cultural Technology 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CA Cultural Technology Group insiders own 449% of the company, currently worth about HK$1.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The CA Cultural Technology Group Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CA Cultural Technology Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CA Cultural Technology Group. At Simply Wall St, we've found that CA Cultural Technology Group has 3 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
Of course CA Cultural Technology 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.