This Insider Has Just Sold Shares In Country Garden Services Holdings Company Limited (HKG:6098)

By
Simply Wall St
Published
April 10, 2022
SEHK:6098
Source: Shutterstock

We wouldn't blame Country Garden Services Holdings Company Limited (HKG:6098) shareholders if they were a little worried about the fact that Zhanjun Guo, the Executive Director recently netted about HK$11m selling shares at an average price of HK$37.25. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Country Garden Services Holdings

Country Garden Services Holdings Insider Transactions Over The Last Year

The Non-Executive Director, Zhicheng Yang, made the biggest insider sale in the last 12 months. That single transaction was for HK$131m worth of shares at a price of HK$82.00 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$40.10. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 2.31m shares for HK$121m. But they sold 8.55m shares for HK$605m. All up, insiders sold more shares in Country Garden Services Holdings 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!

insider-trading-volume
SEHK:6098 Insider Trading Volume April 10th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Country Garden Services Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Country Garden Services Holdings insiders own 43% of the company, currently worth about HK$59b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Country Garden Services Holdings Tell Us?

An insider sold Country Garden Services Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Country Garden Services Holdings is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Country Garden Services Holdings.

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, but not derivative transactions.

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