It is not uncommon to see companies perform well in the years following an insider purchase of shares. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. Shareholders might therefore want to know if any insiders bought or sold shares of Fineland Real Estate Services Group Limited (HKG: 9978).
What is insider selling?
It is perfectly legal for company insiders, including members of the board of directors, to buy and sell shares in a company. However, these insiders should disclose their trading activities and not trade on the basis of inside information.
Insider trading is not the most important thing when it comes to investing for the long term. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Columbia University to study found that “insiders are more likely to engage in open market purchases of their own company’s stocks when the company is about to reveal new deals with customers and suppliers.”
See our latest review for Fineland Real Estate Services Group
The Last 12 Months of Insider Trading at Fineland Real Estate Services Group
Chief Compliance Officer and Executive Director Ruofeng Yi had the biggest insider sale in the past 12 months. This single transaction involved shares valued at HK $ 840,000 priced at HK $ 0.70 each. We generally don’t like to see insider sales, but the lower the selling price, the more it concerns us. The good news is that this big sale was well above the current price of HK $ 0.57. So it might not shed much light on insider confidence at current levels.
In total, Fineland Real Estate Services Group insiders have sold more than they have bought in the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
I’d like the Fineland Real Estate Services Group better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Insiders of the Fineland Real Estate Services group bought shares recently
Over the past three months, we have seen significant insider buying at Fineland Real Estate Services Group. Specifically, CEO and Executive Director Haiming Rong purchased HK $ 525,000 worth of shares during this period, and we did not record any sales. This shows some optimism about the future of the company.
Insider ownership of Fineland Real Estate Services Group
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. We generally like to see fairly high levels of insider ownership. From our data, it appears that insiders of Fineland Real Estate Services Group own 8.0% of the company, worth around HK $ 18 million. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. While better than nothing, we’re not overly impressed with these holdings.
What might insider trading at Fineland Real Estate Services Group tell us?
It’s good to see the recent insider buy. Longer-term transactions are not so encouraging, however. While recent transactions demonstrate confidence in Fineland Real Estate Services Group, insiders do not own enough the company to overcome our caution about longer-term transactions. So, they seem pretty well aligned, overall. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. You would be interested to know that we have found 2 warning signs for Fineland Real Estate Services Group and we suggest you take a look.
Sure Fineland Real Estate Services Group may not be the best stock to buy. So you might want to see this free collection of high quality businesses.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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