Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543) stock price has dropped 10% in the previous week, but insiders who sold CN¥19m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CN¥0.29 is still lower than the current share price.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Guangdong Join-Share Financing Guarantee Investment Insider Transactions Over The Last Year
The insider, Zhi Jian Wu, made the biggest insider sale in the last 12 months. That single transaction was for HK$17m worth of shares at a price of HK$0.28 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.17). So it is hard to draw any strong conclusion from it. Zhi Jian Wu was the only individual insider to sell shares in the last twelve months.
Zhi Jian Wu ditched 65.16m shares over the year. The average price per share was CN¥0.29. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Guangdong Join-Share Financing Guarantee Investment
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Guangdong Join-Share Financing Guarantee Investment insiders own 11% of the company, worth about HK$29m. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Guangdong Join-Share Financing Guarantee Investment Insiders?
It doesn't really mean much that no insider has traded Guangdong Join-Share Financing Guarantee Investment shares in the last quarter. Still, the insider transactions at Guangdong Join-Share Financing Guarantee Investment in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guangdong Join-Share Financing Guarantee Investment. Be aware that Guangdong Join-Share Financing Guarantee Investment is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
But note: Guangdong Join-Share Financing Guarantee Investment may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.