We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in COSCO SHIPPING Ports Limited (HKG:1199).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
The Last 12 Months Of Insider Transactions At COSCO SHIPPING Ports
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
COSCO SHIPPING Ports insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
COSCO SHIPPING Ports 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 COSCO SHIPPING Ports
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our information indicates that COSCO SHIPPING Ports insiders own about HK$7.0m worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Do The COSCO SHIPPING Ports Insider Transactions Indicate?
It doesn't really mean much that no insider has traded COSCO SHIPPING Ports shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if COSCO SHIPPING Ports insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in COSCO SHIPPING Ports, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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