It would be surprising if China Cultural Tourism Agricultural Group Limited (HKG:542) shareholders were unaware that CEO and Chairman of the Board, Yang Lijun, recently sold HK$1 million worth of shares at HK$0.17 per share. On the bright side, the sale represented only 0.2% of his holding, so on its own it may not be very meaningful.
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Insider transactions in the past 12 months at China Cultural Tourism Agriculture Group
The largest insider purchase in the past year was by insider Kaijun Chen for HK$148 million worth of shares, at about HK$0.20 per share. This means that insiders were happy to buy shares at a higher price than the current price of HK$0.16. Their views may have changed since then, but we can see that they were at least optimistic at the time. In our view, the price insiders pay for shares is very important. As a general rule, if insiders buy shares at a price higher than the current price, they feel more positive about the stock. This is because it shows that they viewed the stock as valuable, even at a higher price.
Luckily, last year insiders bought 785.61 million shares for HK$155 million. However, they sold 228.1 million shares for HK$34 million. Overall, China Cultural Tourism Agriculture Group insiders bought more shares than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. You can click on the chart to see all the individual transactions, including stock price, individuals, and dates.
SEHK:542 Insider Trading Volume July 17, 2024
SEHK:542 Insider Trading Volume July 17, 2024There are plenty of other companies where insiders have been buying up shares, so you probably don’t want to miss this free list of undervalued small companies that insiders are buying.
Insider Ownership
For ordinary shareholders, it is worth checking how many shares are held by company insiders. High insider ownership tends to make company management more mindful of shareholder interests. China Cultural Tourism Agriculture Group insiders own 66% of the company’s shares, worth approximately HK$811m. Seeing this level of insider ownership increases the likelihood that management has shareholder interests at heart.
So what does this data suggest about the insiders at China Cultural Tourism and Agriculture Group?
Unfortunately, over the last three months, insider selling of China Cultural Tourism Agricultural Group shares has outweighed buying. In contrast, looking at the last 12 months, they appear to be more enthusiastic. What’s more, insiders own a significant portion of the company, so we’re not concerned by the recent transactions. In addition to knowing about ongoing insider transactions, it could be useful to identify risks facing China Cultural Tourism Agricultural Group. After doing our research, we’ve found 4 warning signs for China Cultural Tourism Agricultural Group (2 are worrying!) that we think are well worth paying attention to.
Of course, you may find great investments by looking elsewhere, so take a peek at this free list of interesting companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory bodies. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
Valuation is complicated, but we can help make it simple.
Check out our comprehensive analysis, including fair value estimates, risks and warnings, dividends, insider transactions, financial position and more, to find out if China Cultural Tourism Agriculture Group is potentially overvalued or undervalued.
View your free analysis
Have something to say about this article? If you have any questions about the content, please contact us directly or email us at editorial-team@simplywallst.com.
