Potential Greentown Management Holdings Company Limited (HKG:9979) shareholders may wish to note that the CEO & Executive Director, Jun Li, recently bought HK$1.6m worth of stock, paying HK$5.50 for each share. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.

Check out our latest analysis for Greentown Management Holdings

Greentown Management Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by CEO & Executive Director Jun Li was not the only time they bought Greentown Management Holdings shares this year. Earlier in the year, they paid HK$4.67 per share in a HK$2.9m purchase. Even though the purchase was made at a significantly lower price than the recent price (HK$5.93), we still think insider buying is a positive. 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.

Jun Li purchased 1.77m shares over the year. The average price per share was HK$5.06. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Greentown Management Holdings

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. Greentown Management Holdings insiders own about HK$111m worth of shares. That equates to 0.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Greentown Management Holdings Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Greentown Management Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Greentown Management Holdings that deserve your attention before buying any shares.

But note: Greentown Management 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, but not derivative transactions.

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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.