Have Insiders Sold GT Steel Construction Group Limited (HKG:8402) Shares Recently?

We wouldn't blame GT Steel Construction Group Limited (HKG:8402) shareholders if they were a little worried about the fact that Cheng Yew Ong, the Founder recently netted about HK$4.9m selling shares at an average price of HK$0.34. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.1%.

View our latest analysis for GT Steel Construction Group

The Last 12 Months Of Insider Transactions At GT Steel Construction Group

In fact, the recent sale by Cheng Yew Ong was the biggest sale of GT Steel Construction 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 below the current price of HK$0.40, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 4.1% of Cheng Yew Ong's stake.

Cheng Yew Ong sold a total of 18.27m shares over the year at an average price of S$0.31. 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does GT Steel Construction Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. GT Steel Construction Group insiders own about HK$128m worth of shares (which is 74% of the company). 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 GT Steel Construction Group Tell Us?

An insider sold GT Steel Construction Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in GT Steel Construction Group.

Of course GT Steel Construction 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, but not derivative transactions.

When trading GT Steel Construction Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.