From what we can see, insiders were net sellers in GCL Technology Holdings Limited's (HKG:3800 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At GCL Technology Holdings
Over the last year, we can see that the biggest insider sale was by the Joint CEO & Executive Director, Tianshi Lan, for HK$2.7m worth of shares, at about HK$1.45 per share. That means that an insider was selling shares at slightly below the current price (HK$1.49). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 55% of Tianshi Lan's holding. Tianshi Lan was the only individual insider to sell shares in the last twelve months. Notably Tianshi Lan was also the biggest buyer, having purchased HK$1.6m worth of shares.
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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of GCL Technology 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests GCL Technology Holdings insiders own 0.07% of the company, worth about HK$27m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
So What Does This Data Suggest About GCL Technology Holdings Insiders?
The fact that there have been no GCL Technology Holdings insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by GCL Technology Holdings insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GCL Technology Holdings. To that end, you should learn about the 2 warning signs we've spotted with GCL Technology Holdings (including 1 which is potentially serious).
Of course GCL Technology Holdings 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.