Investors who take an interest in CMGE Technology Group Limited (HKG:302) should definitely note that the Executive Chairman of Board & CEO, Jian Xiao, recently paid HK$1.21 per share to buy HK$908k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
CMGE Technology Group Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman of Board & CEO Jian Xiao was not their only acquisition of CMGE Technology Group shares this year. They previously made an even bigger purchase of HK$1.8m worth of shares at a price of HK$2.55 per share. That means that even when the share price was higher than HK$1.26 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Jian Xiao.
Jian Xiao bought 1.45m shares over the last 12 months at an average price of HK$1.86. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
CMGE Technology Group 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 CMGE Technology Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CMGE Technology Group insiders own 7.7% of the company, worth about HK$267m. 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 Does This Data Suggest About CMGE Technology Group Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give 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 CMGE Technology Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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 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.