Insiders Of CT Vision (International) Holdings Reap Rewards After Their Investment Jumps Another HK$63m

CT Vision (International) Holdings Limited (HKG:994) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a HK$50m rise in the company's market capitalisation, translating to a gain of 166% on their initial investment. In other words, the original HK$37.7m purchase is now worth HK$100.3m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At CT Vision (International) Holdings

Over the last year, we can see that the biggest insider purchase was by insider Gang Zhu for HK$23m worth of shares, at about HK$0.36 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$0.39. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 purchases were made at close to current prices. We note that Gang Zhu was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid HK$38m for 260.50m shares. But insiders sold 30.58m shares worth HK$9.3m. In the last twelve months there was more buying than selling by CT Vision (International) Holdings insiders. Their average price was about HK$0.14. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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 CT Vision (International) Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CT Vision (International) Holdings insiders own 27% of the company, worth about HK$115m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CT Vision (International) Holdings Insider Transactions Indicate?

The fact that there have been no CT Vision (International) Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, CT Vision (International) Holdings insiders feel good about the company's future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - CT Vision (International) Holdings has 2 warning signs we think you should be aware of.

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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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.