Insider Stock Buying Reaches CN¥39.0m On Guming Holdings

Over the last year, a good number of insiders have significantly increased their holdings in Guming Holdings Limited (HKG:1364). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Guming Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder Yun’an Wang for HK$12m worth of shares, at about HK$15.58 per share. We do like to see buying, but this purchase was made at well below the current price of HK$22.16. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Guming Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Guming Holdings

Guming Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Guming Holdings

Many investors like to check how much of a company is owned by 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. It's great to see that Guming Holdings insiders own 73% of the company, worth about HK$38b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Guming Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Guming Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Guming Holdings insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Guming Holdings, you should check out this free report on analyst forecasts for the company.

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 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.