Insiders Could Have Profited By Holding onto GT Gold Holdings Shares Despite 15% Drop

Despite the fact that GT Gold Holdings Limited's (HKG:8299) value has dropped 15% in the last week insiders who sold HK$11m worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of HK$0.66 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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GT Gold Holdings Insider Transactions Over The Last Year

The insider, Mingqing Gao, made the biggest insider sale in the last 12 months. That single transaction was for HK$11m worth of shares at a price of HK$0.66 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.22. So it is hard to draw any strong conclusion from it. Mingqing Gao was the only individual insider to sell shares in the last twelve months. Notably Mingqing Gao was also the biggest buyer, having purchased HK$6.6m worth of shares.

You can see a visual depiction of insider transactions (by companies and 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!

Check out our latest analysis for GT Gold Holdings

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Does GT Gold Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. GT Gold Holdings insiders own 48% of the company, currently worth about HK$998m based on the recent share price. 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 GT Gold Holdings Insider Transactions Indicate?

The fact that there have been no GT Gold Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of GT Gold Holdings, we can't say the same about the selling of shares. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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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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