Insider Buying: Zhi Jian Wu Just Spent CN¥14m On Guangdong Join-Share Financing Guarantee Investment Co., Ltd. (HKG:1543) Shares

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. (HKG:1543) shareholders (or potential shareholders) will be happy to see that insider Zhi Jian Wu recently bought a whopping HK$14m worth of stock, at a price of HK$1.19. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.

Check out our latest analysis for Guangdong Join-Share Financing Guarantee Investment

The Last 12 Months Of Insider Transactions At Guangdong Join-Share Financing Guarantee Investment

In fact, the recent purchase by Zhi Jian Wu was the biggest purchase of Guangdong Join-Share Financing Guarantee Investment shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$1.28. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Guangdong Join-Share Financing Guarantee Investment insiders decided to buy shares at close to current prices. Notably Zhi Jian Wu was also the biggest seller.

In the last twelve months insiders purchased 23.66m shares for HK$30m. But insiders sold 1.05m shares worth HK$1.3m. Overall, Guangdong Join-Share Financing Guarantee Investment insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Guangdong Join-Share Financing Guarantee Investment is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 appears that Guangdong Join-Share Financing Guarantee Investment insiders own 20% of the company, worth about HK$407m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Guangdong Join-Share Financing Guarantee Investment Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Guangdong Join-Share Financing Guarantee Investment insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While we like knowing 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Guangdong Join-Share Financing Guarantee Investment.

Of course Guangdong Join-Share Financing Guarantee Investment 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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