Insiders were net sellers of Giant Biogene Holding Co., Ltd.'s (HKG:2367 ) stock during the past year. That is, insiders sold more stock than they bought.
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.
The Last 12 Months Of Insider Transactions At Giant Biogene Holding
Over the last year, we can see that the biggest insider sale was by the Chief Scientific Officer, Daidi Fan, for HK$1.6b worth of shares, at about HK$49.40 per share. So we know that an insider sold shares at around the present share price of HK$46.70. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Daidi Fan. Notably Daidi Fan was also the biggest buyer, having purchased HK$1.6b 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!
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Are Giant Biogene Holding Insiders Buying Or Selling?
In the last quarter there were insider sales totalling HK$1.6b. But that was only a smidgen more than the HK$1.6b worth of buying. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership Of Giant Biogene Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Giant Biogene Holding insiders own about HK$27b worth of shares (which is 58% of the company). 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 Do The Giant Biogene Holding Insider Transactions Indicate?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Giant Biogene Holding insider transactions. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Giant Biogene Holding you should know about.
Of course Giant Biogene Holding 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com