China Greenland Broad Greenstate Group's Recent Gains Improve Losses On Insider Purchases Worth CN¥30.1m

Insiders who bought CN¥30.1m worth of China Greenland Broad Greenstate Group Company Limited (HKG:1253) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CN¥22m since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for China Greenland Broad Greenstate Group

The Last 12 Months Of Insider Transactions At China Greenland Broad Greenstate Group

In the last twelve months, the biggest single purchase by an insider was when insider Hanhao Zhu bought HK$30m worth of shares at a price of HK$0.10 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.028). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hanhao Zhu was the only individual insider to buy shares in the last twelve months.

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!

China Greenland Broad Greenstate Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of China Greenland Broad Greenstate Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that China Greenland Broad Greenstate Group insiders own 8.4% of the company, worth about HK$14m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At China Greenland Broad Greenstate Group Tell Us?

The fact that there have been no China Greenland Broad Greenstate Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in China Greenland Broad Greenstate Group and we see no evidence to suggest they are worried about the future. While it's good to be aware of 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 that end, you should learn about the 5 warning signs we've spotted with China Greenland Broad Greenstate Group (including 3 which don't sit too well with us).

Of course China Greenland Broad Greenstate 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.