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Have GTI Holdings Limited (HKG:3344) Insiders Been Selling Their Stock?

Simply Wall St

Anyone interested in GTI Holdings Limited (HKG:3344) should probably be aware that the Chairman of the Board, Sum Poon, recently divested HK$790k worth of shares in the company, at an average price of HK$0.15 each. On the bright side, that sale was only 0.2% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for GTI Holdings

GTI Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Chairman of the Board Sum Poon was not the only time they sold GTI Holdings shares this year. They previously made an even bigger sale of -HK$56.8m worth of shares at a price of HK$0.35 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.13). So it may not tell us anything about how insiders feel about the current share price.

Sum Poon sold a total of 383224000 shares over the year at an average price of HK$0.29. You can see the insider transactions (by 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!

SEHK:3344 Recent Insider Trading, October 11th 2019

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that GTI Holdings insiders own 52% of the company, worth about HK$428m. 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 GTI Holdings Insider Transactions Indicate?

An insider hasn't bought GTI Holdings stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Along with insider transactions, I recommend checking if GTI Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.