Insiders appear to have made the most of their holdings by selling CNN 92million of Greentown Service Group Co. Ltd. (HKG: 2869) at an average selling price of 12.03 CN during the past year. After the stock price fell 7.9% last week, the company’s market value fell by HK $ 2.0 billion, but insiders were able to mitigate their losses.
While insider trading isn’t the most important thing when it comes to investing for the long term, we think it makes perfect sense to keep tabs on what insiders are doing.
Check out our latest review for Greentown Service Group
The last 12 months of insider trading at Greentown Service Group
Executive Director Zhihua Wu achieved the biggest insider selling in the past 12 months. This single transaction involved shares valued at HK $ 29 million at a price of HK $ 11.91 each. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. The good news is that this big sale was well above the current price of HK $ 7.12. It is therefore difficult to draw a solid conclusion. Zhihua Wu was the only individual insider to sell shares in the past twelve months.
Zhihua Wu gave up 7.68 million shares during the year. The average price per share was 12.03 CN. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders buy them).
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Strong insider ownership often makes company management more concerned with the interests of shareholders. It’s great to see that Greentown Service Group insiders own 17% of the business, worth around HK $ 3.8 billion. I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what does this data suggest about Greentown Service Group insiders?
We certainly don’t mind the fact that there haven’t been any recent insider trading from Greentown Service Group. While we are pleased with the high insider ownership of Greentown Service Group, we cannot say the same for the sale of shares. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. You would be interested to know that we have found 1 warning sign for Greentown Service Group and we suggest you take a look.
Sure Greentown Service Group might not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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