Executive Chairman of Citychamp Watch & Jewellery Group Kwok Lung Hon Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Kwok Lung Hon, the Executive Chairman of Citychamp Watch & Jewellery Group Limited (HKG:256) recently shelled out HK$722k to buy stock, at HK$0.20 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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

Notably, that recent purchase by Executive Chairman Kwok Lung Hon was not the only time they traded Citychamp Watch & Jewellery Group shares this year. They previously made a sale of -HK$133m worth of shares at a price of HK$0.70 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.18). So it is hard to draw any strong conclusion from it.

Kwok Lung Hon ditched 748.90m shares over the year. The average price per share was HK$0.50. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Citychamp Watch & Jewellery Group

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Does Citychamp Watch & Jewellery Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Citychamp Watch & Jewellery Group insiders own about HK$425m worth of shares (which is 55% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Citychamp Watch & Jewellery Group Insiders?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Citychamp Watch & Jewellery Group insiders are reasonably well aligned, and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Citychamp Watch & Jewellery Group (1 is concerning!) and we strongly recommend you look at them before investing.

But note: Citychamp Watch & Jewellery 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.