Anyone interested in Guanze Medical Information Industry (Holding) Co., Ltd. (HKG:2427) should probably be aware that the CEO & Chairman, Xianzhen Meng, recently divested HK$1.0m worth of shares in the company, at an average price of HK$0.54 each. However, the silver lining is that the sale only reduced their total holding by 0.3%, so we're hesitant to read anything much into it, on its own.
Guanze Medical Information Industry (Holding) Insider Transactions Over The Last Year
In fact, the recent sale by Xianzhen Meng was the biggest sale of Guanze Medical Information Industry (Holding) shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$0.51. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Xianzhen Meng sold a total of 1.92m shares over the year at an average price of CN¥0.54. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Guanze Medical Information Industry (Holding) better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Guanze Medical Information Industry (Holding) insiders own about HK$363m worth of shares (which is 75% of the company). 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 Do The Guanze Medical Information Industry (Holding) Insider Transactions Indicate?
An insider hasn't bought Guanze Medical Information Industry (Holding) stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Guanze Medical Information Industry (Holding) (including 3 which make us uncomfortable).
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.
