Who Has Been Selling Shanghai Jin Jiang International Hotels (Group) Company Limited (HKG:2006) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Shanghai Jin Jiang International Hotels (Group) Company Limited (HKG:2006).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Shanghai Jin Jiang International Hotels (Group)
In the last twelve months, the biggest single sale by an insider was when Hoi Kwok sold HK$9.0m worth of shares at a price of HK$2.38 per share. That is hardly a positive sign, even though it took place above the latest price (HK$1.88). So it may not tell us anything about how insiders feel about the current share price. Hoi Kwok was the only individual insider to sell shares in the last twelve months.
Hoi Kwok ditched 6.23m shares over the year. The average price per share was CN¥2.31. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Shanghai Jin Jiang International Hotels (Group) Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Shanghai Jin Jiang International Hotels (Group) insiders own 2.7% of the company, worth about HK$287m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Shanghai Jin Jiang International Hotels (Group) Insider Transactions Indicate?
The fact that there have been no Shanghai Jin Jiang International Hotels (Group) insider transactions recently certainly doesn’t bother us. It’s great to see high levels of insider ownership, but looking back at the last year, we don’t gain confidence from the Shanghai Jin Jiang International Hotels (Group) insiders selling. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Shanghai Jin Jiang International Hotels (Group) may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
