We wouldn't blame China Greenland Broad Greenstate Group Company Limited (HKG:1253) shareholders if they were a little worried about the fact that Zhengping Wu, a company insider, recently netted about HK$9.4m selling shares at an average price of HK$0.04. Probably the most concerning element of the whole transaction is that the disposal amounted to 55% of their entire holding.

The Last 12 Months Of Insider Transactions At China Greenland Broad Greenstate Group

The insider Hanhao Zhu made the biggest insider purchase in the last 12 months. That single transaction was for HK$30m worth of shares at a price of HK$0.10 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.034). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hanhao Zhu was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. 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 undervalued small cap companies that insiders are buying.

Does China Greenland Broad Greenstate Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of China Greenland Broad Greenstate Group shares, worth about HK$25m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At China Greenland Broad Greenstate Group Tell Us?

An insider sold China Greenland Broad Greenstate Group shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. 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. For instance, we've identified 6 warning signs for China Greenland Broad Greenstate Group (4 are concerning) you should be aware of.

But note: China Greenland Broad Greenstate Group 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.