Are Insiders Buying ManpowerGroup Greater China Limited (HKG:2180) Stock?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in ManpowerGroup Greater China Limited (HKG:2180).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for ManpowerGroup Greater China

ManpowerGroup Greater China Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO, President & Executive Director Jianhua Yuan bought HK$706k worth of shares at a price of HK$10.09 per share. That means that an insider was happy to buy shares at around the current price of HK$11.96. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Jianhua Yuan.

Jianhua Yuan bought 204.75k shares over the last 12 months at an average price of HK$9.09. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of ManpowerGroup Greater China

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From what we can see in our data, insiders own only about HK$2.4m worth of ManpowerGroup Greater China shares. This level of insider ownership is notably low, and not very encouraging.

So What Do The ManpowerGroup Greater China Insider Transactions Indicate?

It doesn't really mean much that no insider has traded ManpowerGroup Greater China shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more ManpowerGroup Greater China stock. 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. You'd be interested to know, that we found 1 warning sign for ManpowerGroup Greater China and we suggest you have a look.

Of course ManpowerGroup Greater China 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.

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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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