Possible Signal As Guangdong Join-Share Financing Guarantee Investment Insiders Sell CN¥20m In Stock

Despite a 11% gain in Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell CN¥20m worth of stock in the last year, which could indicate some expected downturn.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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

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

Over the last year, we can see that the biggest insider sale was by the insider, Kai Bong Lo, for HK$18m worth of shares, at about HK$1.02 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.78). So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Guangdong Join-Share Financing Guarantee Investment than they bought, over the last year. They sold for an average price of about CN¥0.88. Insider selling doesn't make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is HK$0.78). The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Guangdong Join-Share Financing Guarantee Investment Have Bought Stock Recently

We saw some Guangdong Join-Share Financing Guarantee Investment insider buying shares in the last three months. insider Zhi Jian Wu purchased HK$348k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

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 appears that Guangdong Join-Share Financing Guarantee Investment insiders own 17% of the company, worth about HK$209m. 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 Do The Guangdong Join-Share Financing Guarantee Investment Insider Transactions Indicate?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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. When we did our research, we found 3 warning signs for Guangdong Join-Share Financing Guarantee Investment (1 is a bit concerning!) that we believe deserve your full attention.

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.