We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Crystal International Group Limited (HKG:2232).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'

See our latest analysis for Crystal International Group

The Last 12 Months Of Insider Transactions At Crystal International Group

Vice Chairman Choy Yuk Ching Yvonne Lo made the biggest insider purchase in the last 12 months. That single transaction was for HK$11m worth of shares at a price of HK$0.01 each. Even though the purchase was made at a significantly lower price than the recent price (HK$3.95), we still think insider buying is a positive. But because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 2.3b shares worth HK$27m. Crystal International Group may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$0.012. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's 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!

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.

Insiders at Crystal International Group Have Bought Stock Recently

Over the last quarter, Crystal International Group insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out US$23m for shares in the company -- and none sold. This makes one think the business has some good points.

Does Crystal International Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Crystal International Group insiders own 81% of the company, worth about HK$9.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Crystal International Group Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Crystal International Group. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Crystal International Group.

Of course Crystal International Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.