Selling Greenland Hong Kong Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Greenland Hong Kong Holdings Limited's (HKG:337) stock price has dropped 12% in the previous week, but insiders who sold CN¥19m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of CN¥0.30 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Greenland Hong Kong Holdings

The Last 12 Months Of Insider Transactions At Greenland Hong Kong Holdings

In the last twelve months, the biggest single sale by an insider was when the Founder, Weixian Wang, sold HK$14m worth of shares at a price of HK$0.30 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.18. So it is hard to draw any strong conclusion from it. Weixian Wang was the only individual insider to sell over the last year.

Weixian Wang ditched 63.06m shares over the year. The average price per share was CN¥0.30. 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!

I will like Greenland Hong Kong Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Greenland Hong Kong Holdings Have Sold Stock Recently

The last three months saw some Greenland Hong Kong Holdings insider selling. Founder Weixian Wang sold just HK$160k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that Greenland Hong Kong Holdings insiders own about HK$43m worth of shares (which is 8.1% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Greenland Hong Kong 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. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Greenland Hong Kong Holdings is showing 4 warning signs in our investment analysis, and 2 of those are potentially serious...

Of course Greenland Hong Kong Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com