Have GL-Carlink Technology Holding Insiders Been Selling Stock?

We wouldn't blame GL-Carlink Technology Holding Limited (HKG:2531) shareholders if they were a little worried about the fact that Zhongyong Jiang, a company insider, recently netted about HK$91m selling shares at an average price of HK$3.50. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At GL-Carlink Technology Holding

Notably, that recent sale by Zhongyong Jiang is the biggest insider sale of GL-Carlink Technology Holding shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$14.01). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Zhongyong Jiang's stake.

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!

View our latest analysis for GL-Carlink Technology Holding

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Insider Ownership Of GL-Carlink Technology Holding

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. GL-Carlink Technology Holding insiders own about HK$2.5b worth of shares (which is 48% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The GL-Carlink Technology Holding Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - GL-Carlink Technology Holding has 2 warning signs we think you should be aware of.

Of course GL-Carlink Technology Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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.