Over the last year, a good number of insiders have significantly increased their holdings in Longfor Group Holdings Limited (HKG:960). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
Check out our latest analysis for Longfor Group Holdings
The Last 12 Months Of Insider Transactions At Longfor Group Holdings
In the last twelve months, the biggest single purchase by an insider was when insider Yajun Wu bought HK$1.1b worth of shares at a price of HK$9.80 per share. We do like to see buying, but this purchase was made at well below the current price of HK$11.20. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 220.57m shares worth HK$2.1b. But insiders sold 7.71m shares worth HK$101m. Overall, Longfor Group Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Longfor Group Holdings Have Sold Stock Recently
We've seen more insider selling than insider buying at Longfor Group Holdings recently. In that time, CEO & Executive Chairperson Xuping Chen dumped HK$20m worth of shares. On the other hand we note insiders bought HK$2.3m worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Does Longfor 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Longfor Group Holdings insiders own 53% of the company, worth about HK$41b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Longfor Group Holdings Insiders?
The insider sales have outweighed the insider buying, at Longfor Group Holdings, in the last three months. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Longfor Group Holdings is showing 6 warning signs in our investment analysis, and 1 of those is potentially serious...
But note: Longfor Group 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.