Don't Ignore The Fact That This Insider Just Sold Some Shares In Grand Talents Group Holdings Limited (HKG:8516)

We wouldn't blame Grand Talents Group Holdings Limited (HKG:8516) shareholders if they were a little worried about the fact that Bin Li, a company insider, recently netted about HK$18m selling shares at an average price of HK$0.22. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for Grand Talents Group Holdings

The Last 12 Months Of Insider Transactions At Grand Talents Group Holdings

In fact, the recent sale by insider Bin Li was not their only trade of Grand Talents Group Holdings shares this year. They previously purchased HK$252m worth of shares at a price of HK$2.80 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.22). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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. The only individual insider to buy over the last year was Bin Li. Notably Bin Li was also the biggest seller.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Grand Talents Group Holdings

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Grand Talents Group Holdings insiders own 17% of the company, worth about HK$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Grand Talents Group Holdings Tell Us?

An insider hasn't bought Grand Talents Group Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. 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. Our analysis shows 5 warning signs for Grand Talents Group Holdings (2 can't be ignored!) and we strongly recommend you look at them before investing.

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.

If you’re looking to trade Grand Talents Group Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade 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.