It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Longfor Group Holdings Limited (HKG:960).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Longfor Group Holdings Insider Transactions Over The Last Year
Chairperson of the Board Yajun Wu made the biggest insider purchase in the last 12 months. That single transaction was for HK$200m worth of shares at a price of HK$22.70 each. That means that an insider was happy to buy shares at around the current price of HK$28.20. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Longfor Group Holdings insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid HK$640m for 29.3m shares. But insiders sold 1.2m shares worth HK$27m. Overall, Longfor Group Holdings insiders were net buyers last year. You can see a visual depiction of insider transactions (by 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!
Longfor Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Longfor Group Holdings Have Sold Stock Recently
The last three months saw significant insider selling at Longfor Group Holdings. In total, insiders sold CN¥6.0m worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Longfor Group Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Longfor Group Holdings insiders own 50% of the company, worth about HK$85b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Longfor Group Holdings Tell Us?
Insiders haven’t bought Longfor Group Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we’re not too bothered by recent selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Longfor Group Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.