Insider Sellers Might Regret Selling GT Gold Holdings Shares at a Lower Price Than Current Market Value

Even though GT Gold Holdings Limited (HKG:8299) has fallen by 16% over the past week , insiders who sold HK$11m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of HK$0.66 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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GT Gold Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Mingqing Gao, for HK$11m worth of shares, at about HK$0.66 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.34. So it may not tell us anything about how insiders feel about the current share price. Mingqing Gao was the only individual insider to sell shares in the last twelve months. Notably Mingqing Gao was also the biggest buyer, having purchased HK$6.6m worth of shares.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 GT Gold Holdings

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of GT Gold Holdings

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that GT Gold Holdings insiders own 52% of the company, worth about HK$1.6b. 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 Does This Data Suggest About GT Gold Holdings Insiders?

It doesn't really mean much that no insider has traded GT Gold Holdings shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of GT Gold Holdings insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GT Gold Holdings. Every company has risks, and we've spotted 4 warning signs for GT Gold Holdings (of which 1 shouldn't be ignored!) you should know about.

But note: GT Gold Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.