Insiders In Citychamp Watch & Jewellery Group Still Down 43% On HK$10.6m Investment

Some of the losses seen by insiders who purchased HK$10.6m worth of Citychamp Watch & Jewellery Group Limited (HKG:256) shares over the past year were recovered after the stock increased by 26% over the past week. However, total losses seen by insiders are still HK$4.6m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Citychamp Watch & Jewellery Group

The Executive Chairman Kwok Lung Hon made the biggest insider purchase in the last 12 months. That single transaction was for HK$2.7m worth of shares at a price of HK$0.97 each. That means that even when the share price was higher than HK$0.54 (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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kwok Lung Hon was the only individual insider to buy during the last year.

Kwok Lung Hon bought a total of 11.06m shares over the year at an average price of HK$0.95. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Citychamp Watch & Jewellery Group

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Citychamp Watch & Jewellery Group Boast High 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. It's great to see that Citychamp Watch & Jewellery Group insiders own 70% of the company, worth about HK$1.6b. 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 Citychamp Watch & Jewellery Group Tell Us?

The fact that there have been no Citychamp Watch & Jewellery Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Citychamp Watch & Jewellery Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.