Non-Executive Director of Gemdale Properties and Investment Picks Up 24% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Gemdale Properties and Investment Corporation Limited (HKG:535) Non-Executive Director, Lian Huat Loh, recently bought HK$513k worth of stock, for HK$0.17 per share. That purchase might not be huge but it did increase their holding by 24%.

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Gemdale Properties and Investment Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CFO & Executive Director, Chuanjun Wei, sold HK$10m worth of shares at a price of HK$0.35 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.17. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 17.69m shares for HK$3.2m. On the other hand they divested 132.31m shares, for HK$47m. In total, Gemdale Properties and Investment insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Gemdale Properties and Investment

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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Gemdale Properties and Investment insiders own 2.7% of the company, worth about HK$76m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

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

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in Gemdale Properties and Investment, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Gemdale Properties and Investment you should be aware of.

Of course Gemdale Properties and Investment 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.

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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.