Some China Cultural Tourism and Agriculture Group Limited (HKG:542) shareholders may be a little concerned to see that the CEO & Executive Chairman of the Board, Lijun Yang, recently sold a substantial HK$11m worth of stock at a price of HK$0.12 per share. However, that sale only accounted for 3.1% of their holding, so arguably it doesn't say much about their conviction.
China Cultural Tourism and Agriculture Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Kaijun Chen bought HK$148m worth of shares at a price of HK$0.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.11). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 782.81m shares for HK$154m. But insiders sold 221.87m shares worth HK$33m. In the last twelve months there was more buying than selling by China Cultural Tourism and Agriculture Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Cultural Tourism and Agriculture Group insiders own 67% of the company, currently worth about HK$576m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The China Cultural Tourism and Agriculture Group Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at China Cultural Tourism and Agriculture Group, in the last three months. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for China Cultural Tourism and Agriculture Group you should be aware of, and 1 of them can't be ignored.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.