Anyone interested in Core Economy Investment Group Limited (HKG:339) should probably be aware that the Chairman of the Board, Bo Sun, recently divested HK$2.2m worth of shares in the company, at an average price of HK$0.27 each. The eyebrow raising move amounted to a reduction of 36% in their holding.
View our latest analysis for Core Economy Investment Group
The Last 12 Months Of Insider Transactions At Core Economy Investment Group
Over the last year, we can see that the biggest insider purchase was by insider Wenjuan Zhu for HK$5.6m worth of shares, at about HK$0.30 per share. That means that an insider was happy to buy shares at above the current price of HK$0.29. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 59.36m shares worth HK$10m. But insiders sold 57.00m shares worth HK$8.0m. In the last twelve months there was more buying than selling by Core Economy Investment Group insiders. They paid about HK$0.18 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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
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. Core Economy Investment Group insiders own about HK$20m worth of shares. That equates to 24% of the company. 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 Does This Data Suggest About Core Economy Investment Group Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Core Economy Investment Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Core Economy Investment Group. Case in point: We've spotted 5 warning signs for Core Economy Investment Group you should be aware of, and 3 of them don't sit too well with us.
But note: Core Economy Investment 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 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.