Keep An Eye On Guangdong Join-Share Financing Guarantee Investment As Insider Stock Selling Hits CN¥19m

Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543) stock rose 12% last week, but insiders who sold CN¥19m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of CN¥0.29, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Guangdong Join-Share Financing Guarantee Investment

The insider, Zhi Jian Wu, made the biggest insider sale in the last 12 months. That single transaction was for HK$17m worth of shares at a price of HK$0.28 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.19. So it is hard to draw any strong conclusion from it. 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$408k worth of shares.

Zhi Jian Wu ditched 65.16m shares over the year. The average price per share was CN¥0.29. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Guangdong Join-Share Financing Guarantee Investment

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Does Guangdong Join-Share Financing Guarantee Investment 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. Insiders own 11% of Guangdong Join-Share Financing Guarantee Investment shares, worth about HK$32m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

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

The fact that there have been no Guangdong Join-Share Financing Guarantee Investment insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Guangdong Join-Share Financing Guarantee Investment insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Guangdong Join-Share Financing Guarantee Investment. Every company has risks, and we've spotted 3 warning signs for Guangdong Join-Share Financing Guarantee Investment (of which 1 is concerning!) you should know about.

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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.