Have Gemilang International Limited (HKG:6163) Insiders Been Selling Their Stock?

Some Gemilang International Limited (HKG:6163) shareholders may be a little concerned to see that the Co-Founder & Chairman of the Board, Sun Phang, recently sold a substantial HK$9.6m worth of stock at a price of HK$1.00 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

Check out our latest analysis for Gemilang International

The Last 12 Months Of Insider Transactions At Gemilang International

Notably, that recent sale by Sun Phang is the biggest insider sale of Gemilang International shares that we've seen in the last year. That means that an insider was selling shares at around the current price of HK$0.95. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Sun Phang ditched 30.38m shares over the year. The average price per share was US$1.02. 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!

If you are like me, then you will not want to miss this free list of growing 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Gemilang International insiders own about HK$138m worth of shares (which is 58% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Gemilang International Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Gemilang International, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Gemilang International is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Gemilang International.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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