Read This Before Selling G.H.Y Culture & Media Holding Co., Limited (SGX:XJB) Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell G.H.Y Culture & Media Holding Co., Limited (SGX:XJB), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

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

View our latest analysis for G.H.Y Culture & Media Holding

G.H.Y Culture & Media Holding Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & Group CEO Jingyu Guo for S$491k worth of shares, at about S$0.75 per share. That means that an insider was happy to buy shares at above the current price of S$0.74. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months G.H.Y Culture & Media Holding insiders were buying shares, but not selling. They paid about S$0.67 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

G.H.Y Culture & Media Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

G.H.Y Culture & Media Holding Insiders Bought Stock Recently

Over the last quarter, G.H.Y Culture & Media Holding insiders have spent a meaningful amount on shares. In total, insiders bought S$1.9m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership of G.H.Y Culture & Media Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. G.H.Y Culture & Media Holding insiders own 86% of the company, currently worth about S$690m 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.

So What Do The G.H.Y Culture & Media Holding Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about G.H.Y Culture & Media Holding. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for G.H.Y Culture & Media Holding that deserve your attention before buying any shares.

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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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. 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.
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