Have GOME Retail Holdings Limited (HKG:493) Insiders Been Selling Their Stock?

Some GOME Retail Holdings Limited (HKG:493) shareholders may be a little concerned to see that insider Kwong Yu Wong recently sold a substantial HK$51m worth of stock at a price of HK$0.13 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.8%.

Check out the opportunities and risks within the HK Specialty Retail industry.

The Last 12 Months Of Insider Transactions At GOME Retail Holdings

In fact, the recent sale by insider Kwong Yu Wong was not their only sale of GOME Retail Holdings shares this year. They previously made an even bigger sale of -HK$237m worth of shares at a price of HK$0.20 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$0.12. So it may not shed much light on insider confidence at current levels.

GOME Retail Holdings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does GOME Retail Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. GOME Retail Holdings insiders own 43% of the company, currently worth about HK$1.8b based on the recent share price. 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 GOME Retail Holdings Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of GOME Retail Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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

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.