Have Grand Brilliance Group Holdings Limited (HKG:8372) Insiders Been Selling Their Stock?

We note that the Grand Brilliance Group Holdings Limited (HKG:8372) Non-Executive Director, Man Wai Chiu, recently sold HK$333k worth of stock for HK$0.074 per share. It wasn't a huge sale, but it did reduce their holding by 18%. This does not instill confidence.

See our latest analysis for Grand Brilliance Group Holdings

Grand Brilliance Group Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Man Wai Chiu is the biggest insider sale of Grand Brilliance Group Holdings shares that we've seen in the last year. That means that an insider was selling shares at below the current price (HK$0.075). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 18%of Man Wai Chiu's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Grand Brilliance Group Holdings insiders own 73% of the company, worth about HK$44m. 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 Grand Brilliance Group Holdings 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. But since Grand Brilliance Group Holdings is profitable and growing, we're not too worried by this. 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. To that end, you should learn about the 4 warning signs we've spotted with Grand Brilliance Group Holdings (including 2 which are a bit unpleasant).

But note: Grand Brilliance Group Holdings 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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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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