GCL Technology Holdings Limited (HKG:3800) insiders snagged a deal: Up CN¥6.9m on a CN¥5.4m investment

GCL Technology Holdings Limited (HKG:3800) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 4.9% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of CN¥5.4m is now worth CN¥12m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for GCL Technology Holdings

GCL Technology Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder & Executive Chairman Gongshan Zhu bought HK$5.4m worth of shares at a price of HK$0.86 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.96. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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 growing companies that insiders are buying.

Does GCL Technology Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, GCL Technology Holdings insiders have about 0.06% of the stock, worth approximately HK$34m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At GCL Technology Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think GCL Technology Holdings insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GCL Technology Holdings. Case in point: We've spotted 3 warning signs for GCL Technology Holdings you should be aware of, and 2 of them are significant.

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.

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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.