Insiders who bought China Digital Video Holdings Limited (HKG: 8280) stocks over the past 12 months have paid off handsomely last week. The market value of the company increased by HK $ 15 million due to the 25% gain in the stock during the same period. In other words, the original acquisition of CN ¥ 717k is now worth CN ¥ 2.4m.
While we don’t think shareholders should just follow insider trading, we think it makes perfect sense to keep tabs on what insiders are doing.
Check out our latest review for China Digital Video Holdings
The Last 12 Months of Insider Trading at China Digital Video Holdings
Chief strategic advisor Langhua Guo made the biggest insider buy in the past 12 months. This single transaction involved shares valued at HK $ 717,000 at a price of HK $ 0.038 each. We love to see purchases, but this purchase was made at a much lower price than the current price of HK $ 0.13. Because it happened at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
China Digital Video Holdings is not the only one to buy. So take a look at this free list of growing companies with insider buying.
Does China Digital Video Holdings Have Strong Insider Ownership?
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. China Digital Video Holdings insiders own 43% of the company, currently worth around HK $ 33 million based on the recent share price. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.
So what do China Digital Video Holdings’ insider trading indicate?
It doesn’t really mean much that no insider traded China Digital Video Holdings shares in the past quarter. On a more positive note, transactions over the past year are encouraging. It would be great to see more insider buying, but overall it looks like insiders at China Digital Video Holdings are reasonably well aligned (owning a significant share of the company’s stock) and optimistic for the future. . In addition to knowing the current insider trading, it is helpful to identify the risks China Digital Video Holdings faces. During our analysis, we found that China Digital Video Holdings has 3 warning signs and it would be unwise to ignore them.
But beware : China Digital Video Holdings May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with high ROE and low debt.
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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