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Insider Buying: The Computer And Technologies Holdings Limited (HKG:46) Founder & Chairman Just Bought 3.4% More Shares

Simply Wall St ·  Sep 30, 2022 18:40

Even if it's not a huge purchase, we think it was good to see that Cheung Shing Ng, the Founder & Chairman of Computer And Technologies Holdings Limited (HKG:46) recently shelled out HK$495k to buy stock, at HK$2.45 per share. However, it only increased their shares held by 3.4%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Computer And Technologies Holdings

The Last 12 Months Of Insider Transactions At Computer And Technologies Holdings

Notably, that recent purchase by Cheung Shing Ng is the biggest insider purchase of Computer And Technologies Holdings shares that we've seen in the last year. That means that even when the share price was higher than HK$2.41 (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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 1.30m shares for HK$3.2m. On the other hand they divested 454.00k shares, for HK$699k. In total, Computer And Technologies Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeSEHK:46 Insider Trading Volume September 30th 2022

Computer And Technologies Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Computer And Technologies Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Computer And Technologies Holdings insiders own 20% of the company, worth about HK$119m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Computer And Technologies Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Computer And Technologies Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Computer And Technologies Holdings (1 is concerning!) that we believe deserve your full attention.

Of course Computer And Technologies Holdings 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, 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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