This Guangdong Join-Share Financing Guarantee Investment Insider Reduced Their Stake By 71%

From what we can see, insiders were net sellers in Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Guangdong Join-Share Financing Guarantee Investment Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Zhi Jian Wu, for HK$17m worth of shares, at about HK$0.28 per share. That means that an insider was selling shares at around the current price of HK$0.28. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Zhi Jian Wu was the only individual insider to sell over the last year. Notably Zhi Jian Wu was also the biggest buyer, having purchased HK$1.3m worth of shares.

Zhi Jian Wu divested 68.04m shares over the last 12 months at an average price of CN¥0.29. 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!

Check out our latest analysis for Guangdong Join-Share Financing Guarantee Investment

I will like Guangdong Join-Share Financing Guarantee Investment better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Guangdong Join-Share Financing Guarantee Investment Have Sold Stock Recently

The last quarter saw substantial insider selling of Guangdong Join-Share Financing Guarantee Investment shares. Specifically, insider Zhi Jian Wu ditched HK$17m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of Guangdong Join-Share Financing Guarantee Investment shares, worth about HK$47m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Guangdong Join-Share Financing Guarantee Investment Insiders?

An insider sold Guangdong Join-Share Financing Guarantee Investment shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Guangdong Join-Share Financing Guarantee Investment makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Guangdong Join-Share Financing Guarantee Investment (of which 1 makes us a bit uncomfortable!) you should know about.

Of course Guangdong Join-Share Financing Guarantee Investment 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.