Possible Signal As Ganglong China Property Group Insiders Sell CN¥64m In Stock

While Ganglong China Property Group Limited (HKG:6968) shareholders have enjoyed a good week with stock up 28%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell CN¥64m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Ganglong China Property Group

The Last 12 Months Of Insider Transactions At Ganglong China Property Group

In the last twelve months, the biggest single sale by an insider was when the insider, Wing Wai Lui, sold HK$64m worth of shares at a price of HK$0.49 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.23. So it is hard to draw any strong conclusion from it. Wing Wai Lui was the only individual insider to sell shares in the last twelve months.

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!

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Insider Ownership Of Ganglong China Property Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ganglong China Property Group insiders own about HK$85m worth of shares. That equates to 23% 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 Ganglong China Property Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Ganglong China Property Group insiders. But it's good to see that insiders own shares in the company. 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. Be aware that Ganglong China Property Group is showing 5 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

But note: Ganglong China Property Group 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 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.