The Executive Director of GME Group Holdings Limited (HKG:8188), Wei Chu Chuang, Just Bought A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the GME Group Holdings Limited (HKG:8188) Executive Director, Wei Chu Chuang, recently bought HK$59k worth of stock, for HK$0.14 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for GME Group Holdings

GME Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Wei Chu Chuang was the biggest purchase of GME Group Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.14 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for GME Group Holdings share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Wei Chu Chuang.

Wei Chu Chuang bought a total of 656.00k shares over the year at an average price of HK$0.13. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

GME Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of GME Group Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that GME Group Holdings insiders own 64% of the company, worth about HK$43m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At GME Group Holdings Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about GME Group Holdings. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (3 are significant!) that you ought to be aware of before buying any shares in GME Group Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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. 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.
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