Investors who take an interest in Golden Faith Group Holdings Limited (HKG:2863) should definitely note that the Executive Chairman, Chun Hay Ko, recently paid HK$0.25 per share to buy HK$1.0m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

The Last 12 Months Of Insider Transactions At Golden Faith Group Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Kam-Fai Cheung, sold HK$1.2m worth of shares at a price of HK$0.35 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$0.28. So it is hard to draw any strong conclusion from it. Kam-Fai Cheung was the only individual insider to sell shares in the last twelve months.

Kam-Fai Cheung sold a total of 11.23m shares over the year at an average price of HK$0.28. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Golden Faith Group Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Golden Faith Group Holdings insiders own 79% of the company, currently worth about HK$148m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Golden Faith Group Holdings Tell Us?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. 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 Golden Faith Group Holdings 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. When we did our research, we found 3 warning signs for Golden Faith Group Holdings (1 is concerning!) that we believe deserve your full attention.

Of course Golden Faith Group 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.