From what we can see, insiders were net sellers in Giant Biogene Holding Co., Ltd.'s (HKG:2367 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Giant Biogene Holding Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Scientific Officer, Daidi Fan, sold HK$1.6b worth of shares at a price of HK$49.40 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$51.30. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 5.7% of Daidi Fan's holding. Daidi Fan was the only individual insider to sell shares in the last twelve months. Notably Daidi Fan was also the biggest buyer, having purchased HK$1.6b worth of shares.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Giant Biogene Holding

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. It's great to see that Giant Biogene Holding insiders own 58% of the company, worth about HK$30b. 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 Giant Biogene Holding Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Giant Biogene Holding shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Giant Biogene Holding insider transactions don't fill us with confidence. 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 example - Giant Biogene Holding has 1 warning sign we think you should be aware of.

Of course Giant Biogene Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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.