Cathay International Holdings Limited (LON:CTI) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Zhen Tao Wu, recently bought a whopping UK£17m worth of stock, at a price of UK£0.015. That purchase boosted their holding by 854%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Cathay International Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Zhen Tao Wu is the biggest insider purchase of Cathay International Holdings shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.02. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Cathay International Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Cathay International Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Cathay International Holdings insiders own 8.4% of the company, worth about UK£3.2m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Cathay International Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Cathay International Holdings insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Cathay International Holdings has 4 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.
Of course Cathay International Holdings 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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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. 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. Thank you for reading.