Insiders' CN¥10.1m Investments In Red Following Guangdong Join-Share Financing Guarantee Investment's HK$156m Dip In Market Value

Insiders who acquired CN¥10.1m worth of Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543) stock at an average price of CN¥0.77 in the past 12 months may be dismayed by the recent 20% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CN¥5.25m which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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

Guangdong Join-Share Financing Guarantee Investment Insider Transactions Over The Last Year

The insider Zhi Jian Wu made the biggest insider purchase in the last 12 months. That single transaction was for HK$9.4m worth of shares at a price of HK$0.78 each. That means that an insider was happy to buy shares at above the current price of HK$0.40. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Zhi Jian Wu.

Zhi Jian Wu bought a total of 13.13m shares over the year at an average price of HK$0.77. 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!

Guangdong Join-Share Financing Guarantee Investment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Guangdong Join-Share Financing Guarantee Investment Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 16% of Guangdong Join-Share Financing Guarantee Investment shares, worth about HK$102m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Guangdong Join-Share Financing Guarantee Investment Tell Us?

It's certainly positive to see the recent insider purchase. 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. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guangdong Join-Share Financing Guarantee Investment. When we did our research, we found 4 warning signs for Guangdong Join-Share Financing Guarantee Investment (2 shouldn't be ignored!) that we believe deserve your full attention.

But note: Guangdong Join-Share Financing Guarantee Investment 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 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.