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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 we'll take a look at whether insiders have been buying or selling shares in TANSH Global Food Group Co., Ltd (HKG:3666).
What Is Insider Selling?
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.
View our latest analysis for TANSH Global Food Group
TANSH Global Food Group Insider Transactions Over The Last Year
The insider, Huimin Wang, made the biggest insider sale in the last 12 months. That single transaction was for HK$23m worth of shares at a price of HK$0.18 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.11. So it may not tell us anything about how insiders feel about the current share price. Huimin Wang was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 220.57m shares for HK$37m. But insiders sold 123678000 shares worth HK$23m. In the last twelve months there was more buying than selling by TANSH Global Food Group insiders. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
TANSH Global Food Group is not the only stock that insiders are buying. 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
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's great to see that TANSH Global Food Group insiders own 58% of the company, worth about HK$142m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.