Bullish Longfor Group Holdings Insiders Loaded Up On CN¥1.00b Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Longfor Group Holdings Limited (HKG:960). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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

See our latest analysis for Longfor Group Holdings

The Last 12 Months Of Insider Transactions At Longfor Group Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Yajun Wu bought HK$998m worth of shares at a price of HK$9.27 per share. That means that an insider was happy to buy shares at around the current price of HK$10.16. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Longfor Group Holdings insiders decided to buy shares at close to current prices. We note that Yajun Wu was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid HK$1.0b for 107.96m shares. But insiders sold 6.71m shares worth HK$81m. Overall, Longfor Group Holdings insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Longfor Group Holdings Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Longfor Group Holdings. In total, insider Yajun Wu dumped HK$64m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Longfor Group Holdings insiders own 53% of the company, worth about HK$36b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Longfor Group Holdings Tell Us?

An insider sold Longfor Group Holdings shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. 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 4 warning signs for Longfor Group Holdings (1 is concerning!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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