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It is not uncommon to see companies perform well in the years after insiders buy shares. 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 Goal Rise Logistics (China) Holdings Limited (HKG:8457), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Goal Rise Logistics (China) Holdings
The Last 12 Months Of Insider Transactions At Goal Rise Logistics (China) Holdings
The , Zhijian Zhu, made the biggest insider sale in the last 12 months. That single transaction was for HK$4.1m worth of shares at a price of HK$0.21 each. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.26. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 10.7% of Zhijian Zhu's holding.
We note that in the last year insiders divested 36.0m shares for a total of HK$7.3m. In the last year Goal Rise Logistics (China) Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Goal Rise Logistics (China) Holdings Have Sold Stock Recently
The last three months saw significant insider selling at Goal Rise Logistics (China) Holdings. In total, Zhijian Zhu dumped CN¥4.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.