Don't Ignore The Fact That This Insider Just Sold Some Shares In Goldway Education Group Limited (HKG:8160)

Anyone interested in Goldway Education Group Limited (HKG:8160) should probably be aware that the Chief Tutor, Luk Sun Cheung, recently divested HK$3.1m worth of shares in the company, at an average price of HK$0.18 each. However, the silver lining is that the sale only reduced their total holding by 9.9%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Goldway Education Group

The Last 12 Months Of Insider Transactions At Goldway Education Group

Notably, that recent sale by Luk Sun Cheung is the biggest insider sale of Goldway Education Group shares that we've seen in the last year. That means that even when the share price was below the current price of HK$0.24, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.9%of Luk Sun Cheung's holding.

Luk Sun Cheung divested 30.32m shares over the last 12 months at an average price of HK$0.19. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership of Goldway Education Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Goldway Education Group insiders own 64% of the company, worth about HK$75m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Goldway Education Group Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 5 warning signs for Goldway Education Group (1 shouldn't be ignored) you should be aware of.

But note: Goldway Education Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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