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We often see insiders buying up shares in companies that perform well over the long term. 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 before you buy or sell Zhenro Properties Group Limited (HKG:6158), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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.'
View our latest analysis for Zhenro Properties Group
The Last 12 Months Of Insider Transactions At Zhenro Properties Group
Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Guoqiang Ou, for HK$1.2b worth of shares, at about HK$4.95 per share. That means that even when the share price was slightly below the current price of HK$5.00, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 9.4% of Guoqiang Ou's holding. Guoqiang Ou was the only individual insider to sell over the last year. Notably Guoqiang Ou was also the biggest buyer, having purchased HK$1.2b worth of shares.
Guoqiang Ou bought 250.7m shares over the last 12 months at an average price of HK$4.95. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Have Zhenro Properties Group Insiders Traded Recently?
In the last three months, insiders sold CN¥1.2b. However that only slightly eclipses the CN¥1.2b worth of purchases. Ultimately the overall selling isn't enough to tell us much.