We wouldn’t blame Global Strategic Group Limited (HKG:8007) shareholders if they were a little worried about the fact that Guoming Wu, the Executive Director recently netted about HK$7.9m selling shares at an average price of HK$0.21. That’s a big dump, and it decreased their holding size by 30%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Global Strategic Group
Notably, that recent sale by Guoming Wu is the biggest insider sale of Global Strategic Group shares that we’ve seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.27). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 30% of Guoming Wu’s stake.
Guoming Wu divested 52150000 shares over the last 12 months at an average price of HK$0.23. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Global Strategic Group Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 36% of Global Strategic Group shares, worth about HK$118m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Global Strategic Group Tell Us?
An insider sold Global Strategic Group shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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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