Shareholders May Not Overlook Green Power Group Insiders Selling HK$5.9m In Stock

Even though Green Power Group Limited (HKG:1870) stock gained 30% last week, insiders who sold HK$5.9m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of HK$0.49, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Green Power Group

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Kam Tim Kwan, sold HK$4.8m worth of shares at a price of HK$0.48 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.25. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid HK$2.2m for 4.89m shares. On the other hand they divested 12.09m shares, for HK$5.9m. All up, insiders sold more shares in Green Power Group than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Green Power Group

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Insiders At Green Power Group Have Bought Stock Recently

We saw some Green Power Group insider buying shares in the last three months. insider Liaofeng Xu bought HK$146k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Green Power Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Green Power Group insiders own 43% of the company, worth about HK$109m. 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 Green Power Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Green Power Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Green Power Group. For example, Green Power Group has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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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.