Even if it's not a huge purchase, we think it was good to see that Ho Chuen Tsui, the Non Executive Director of CNT Group Limited (HKG:701) recently shelled out HK$213k to buy stock, at HK$0.38 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for CNT Group

CNT Group Insider Transactions Over The Last Year

In fact, the recent purchase by Non Executive Director Ho Chuen Tsui was not their only acquisition of CNT Group shares this year. Earlier in the year, they paid HK$0.40 per share in a HK$460k purchase. That means that an insider was happy to buy shares at above the current price of HK$0.38. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Ho Chuen Tsui.

Ho Chuen Tsui bought a total of 10.40m shares over the year at an average price of HK$0.40. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Insiders own 27% of CNT Group shares, worth about HK$199m. 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 CNT Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about CNT Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CNT Group. Be aware that CNT Group is showing 3 warning signs in our investment analysis, and 2 of those don't sit too well with us...

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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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.