In the last year, multiple insiders have substantially increased their holdings of Citychamp Watch & Jewellery Group Limited (HKG:256) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
Citychamp Watch & Jewellery Group Insider Transactions Over The Last Year
The Executive Chairman Kwok Lung Hon made the biggest insider purchase in the last 12 months. That single transaction was for HK$82m worth of shares at a price of HK$0.10 each. That means that even when the share price was higher than HK$0.10 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Citychamp Watch & Jewellery Group insiders were buying shares, but not selling. 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 Citychamp Watch & Jewellery Group
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Citychamp Watch & Jewellery Group Insiders Bought Stock Recently
Over the last quarter, Citychamp Watch & Jewellery Group insiders have spent a meaningful amount on shares. Specifically, Executive Chairman Kwok Lung Hon bought HK$1.7m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Citychamp Watch & Jewellery Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Citychamp Watch & Jewellery Group insiders own 64% of the company, worth about HK$335m. 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 Does This Data Suggest About Citychamp Watch & Jewellery Group Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Citychamp Watch & Jewellery Group. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Citychamp Watch & Jewellery Group. Be aware that Citychamp Watch & Jewellery Group is showing 3 warning signs in our investment analysis, and 1 of those is significant...
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 of direct interests only, but not derivative transactions or indirect interests.
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