China Sci-Tech Industrial Investment Group Insider Buyers Pleased With HK$64m Return On Investment

China Sci-Tech Industrial Investment Group Limited (HKG:339) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 18% decline in the stock price. After accounting for the recent loss, the HK$18.7m worth of shares they purchased is now worth HK$82.6m, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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China Sci-Tech Industrial Investment Group Insider Transactions Over The Last Year

The insider Tsing-Yip Mak made the biggest insider purchase in the last 12 months. That single transaction was for HK$13m worth of shares at a price of HK$0.12 each. Even though the purchase was made at a significantly lower price than the recent price (HK$0.56), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 146.26m shares for HK$19m. On the other hand they divested 21.41m shares, for HK$3.9m. In the last twelve months there was more buying than selling by China Sci-Tech Industrial Investment Group insiders. 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!

View our latest analysis for China Sci-Tech Industrial Investment 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Sci-Tech Industrial Investment Group insiders own 56% of the company, worth about HK$137m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About China Sci-Tech Industrial Investment Group Insiders?

The fact that there have been no China Sci-Tech Industrial Investment Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like China Sci-Tech Industrial Investment Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that China Sci-Tech Industrial Investment Group has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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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