Those following along with China Environmental Resources Group Limited (HKG:1130) will no doubt be intrigued by the recent purchase of shares by Chi Hang Yeung, Chairman & CEO of the company, who spent a stonking HK$4.0m on stock at an average price of HK$0.075. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 20%.
The Last 12 Months Of Insider Transactions At China Environmental Resources Group
Notably, that recent purchase by Chi Hang Yeung is the biggest insider purchase of China Environmental Resources Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$0.077. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Chi Hang Yeung was the only individual insider to buy shares in the last twelve months.
Chi Hang Yeung bought 134552000 shares over the last 12 months at an average price of HK$0.12. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Environmental Resources Group insiders own about HK$42m worth of shares. That equates to 27% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At China Environmental Resources Group Tell Us?
It's certainly positive 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. Insiders likely see value in China Environmental Resources Group shares, given these transactions (along with notable insider ownership of the company). 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, but not derivative transactions.
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