Potential Gemdale Properties and Investment Corporation Limited (HKG:535) shareholders may wish to note that the Non-Executive Director, Lian Huat Loh, recently bought HK$2.6m worth of stock, paying HK$0.26 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 486%, potentially signalling some real optimism.
See our latest analysis for Gemdale Properties and Investment
The Last 12 Months Of Insider Transactions At Gemdale Properties and Investment
In fact, the recent purchase by Lian Huat Loh was the biggest purchase of Gemdale Properties and Investment shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$0.25 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Gemdale Properties and Investment insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Does Gemdale Properties and Investment Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Gemdale Properties and Investment insiders own about HK$134m worth of shares. That equates to 3.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Gemdale Properties and Investment Insider Transactions Indicate?
The recent insider purchases are heartening. 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 Gemdale Properties and Investment. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gemdale Properties and Investment. To help with this, we've discovered 4 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Gemdale Properties and Investment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.