This Guangzhou Automobile Group Insider Increased Their Holding In The Last Year

Looking at Guangzhou Automobile Group Co., Ltd.'s (HKG:2238 ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Guangzhou Automobile Group

The Last 12 Months Of Insider Transactions At Guangzhou Automobile Group

In fact, the recent purchase by Zejun Hong was the biggest purchase of Guangzhou Automobile Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$2.50 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Zejun Hong was the only individual insider to buy shares in the last twelve months.

Zejun Hong bought a total of 5.22m shares over the year at an average price of HK$2.58. You can see a visual depiction of insider transactions (by companies and 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 undervalued small cap companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. It's great to see that Guangzhou Automobile Group insiders own 2.1% of the company, worth about HK$1.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Guangzhou Automobile Group Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Guangzhou Automobile Group. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guangzhou Automobile Group. Case in point: We've spotted 2 warning signs for Guangzhou Automobile Group you should be aware of.

Of course Guangzhou Automobile Group 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 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.