China Information Technology Development Limited (HKG:8178) shareholders (or potential shareholders) will be happy to see that insider Rong Zhang recently bought a whopping HK$6.6m worth of stock, at a price of HK$0.028. Not only is that a big swing, but it increased their holding size by 46%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At China Information Technology Development
Notably, that recent purchase by insider Rong Zhang was not the only time they bought China Information Technology Development shares this year. Earlier in the year, they paid HK$0.028 per share in a HK$6.6m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.065. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does China Information Technology Development Boast High 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. We usually like to see fairly high levels of insider ownership. China Information Technology Development insiders own about HK$76m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The China Information Technology Development Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of China Information Technology Development we think they are probably pretty confident of a bright future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course China Information Technology Development may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.