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This Insider Has Just Sold Shares In Computime Group Limited (HKG:320)

Simply Wall St ·  Jul 19, 2022 18:35

We note that a Computime Group Limited (HKG:320) insider, Lap Chi Heung, recently sold HK$142k worth of stock for HK$0.60 per share. However we note that the sale only shrunk their holding by 0.1%.

Check out our latest analysis for Computime Group

The Last 12 Months Of Insider Transactions At Computime Group

Notably, that recent sale by insider Lap Chi Heung was not the only time they sold Computime Group shares this year. They previously made an even bigger sale of -HK$267k worth of shares at a price of HK$0.83 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.62). So it may not shed much light on insider confidence at current levels.

Lap Chi Heung ditched 558.00k shares over the year. The average price per share was HK$0.73. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeSEHK:320 Insider Trading Volume July 19th 2022

I will like Computime Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Computime Group

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Computime Group insiders own 67% of the company, currently worth about HK$352m based on the recent share price. 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 Computime Group Tell Us?

An insider sold Computime Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Computime Group makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Computime Group. Every company has risks, and we've spotted 3 warning signs for Computime Group (of which 1 is concerning!) you should know about.

But note: Computime Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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