One Guangdong Join-Share Financing Guarantee Investment Insider Raised Their Stake In The Previous Year
From what we can see, insiders were net buyers in Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
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$703k worth of shares at a price of HK$0.30 each. That implies that an insider found the current price of HK$0.33 per share to be enticing. 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. The good news for Guangdong Join-Share Financing Guarantee Investment share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Zhi Jian Wu. Notably Zhi Jian Wu was also the biggest seller.
Zhi Jian Wu bought a total of 3.75m shares over the year at an average price of HK$0.33. 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!
See our latest analysis for Guangdong Join-Share Financing Guarantee Investment
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Guangdong Join-Share Financing Guarantee Investment insiders own 15% of the company, worth about HK$78m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Guangdong Join-Share Financing Guarantee Investment Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Guangdong Join-Share Financing Guarantee Investment shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Guangdong Join-Share Financing Guarantee Investment is showing 3 warning signs in our investment analysis, and 1 of those is concerning...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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