Insiders who bought China E-Information Technology Group Limited (HKG: 8055) over the past 12 months can probably not pay attention to the stock’s recent 21% drop. Even after factoring in the recent loss, the stocks valued at HK $ 226,000 bought by them are now worth HK $ 521,000 or in other words their investment continues to give good returns.
While we don’t think shareholders should just follow insider trading, we believe it would be foolish to ignore insider trading altogether.
Check out our latest review for China E-Information Technology Group
The Last 12 Months of Insider Trading at China E-Information Technology Group
There hasn’t been a very large single trade in the past year, but we can still see some trade.
Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the exact detail of each insider trade!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Does China’s Electronic Information Technology Group Pride itself on Strong Insider Ownership?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. From our data, it appears that insiders of China E-Information Technology Group own 7.1% of the company, worth around HK $ 11 million. However, it is possible that insiders will have an indirect interest through a more complex structure. While better than nothing, we’re not overly impressed with these holdings.
So what do China E-Information Technology Group’s insider trading indicate?
It doesn’t mean much that no insider traded China E-Information Technology Group shares in the past quarter. However, our analysis of transactions over the past year is encouraging. Overall, we don’t see anything to make us think China E-Information Technology Group insiders are suspicious of the company and own stocks. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To help you, we have discovered 2 warning signs which you should browse to get a better picture of China E-Information Technology Group.
Sure China E-Information Technology Group May Not Be The Best Stock To Buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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