Gemdale Properties and Investment Non-Executive Director Lian Huat Loh Sells 100% Of Holding

We wouldn't blame Gemdale Properties and Investment Corporation Limited (HKG:535) shareholders if they were a little worried about the fact that Lian Huat Loh, the Non-Executive Director recently netted about HK$8.1m selling shares at an average price of HK$0.39. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

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The Last 12 Months Of Insider Transactions At Gemdale Properties and Investment

Notably, that recent sale by Lian Huat Loh is the biggest insider sale of Gemdale Properties and Investment shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.33). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 9.66m shares for HK$1.8m. But they sold 21.16m shares for HK$8.3m. Over the last year we saw more insider selling of Gemdale Properties and Investment shares, than buying. The average sell price was around CN¥0.39. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is HK$0.33). 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!

Check out our latest analysis for Gemdale Properties and Investment

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Insider Ownership Of Gemdale Properties and Investment

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Gemdale Properties and Investment insiders own about HK$184m worth of shares. That equates to 3.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Gemdale Properties and Investment Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. When we did our research, we found 3 warning signs for Gemdale Properties and Investment (2 make us uncomfortable!) that we believe deserve your full attention.

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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.