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Guangzhou R&F Properties Co., Ltd. (HKG:2777) shareholders (or potential shareholders) will be happy to see that the Co-Founder & Chairman, Sze Lim Li, recently bought a whopping HK$20m worth of stock, at a price of HK$10.22. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 8.7%.
View our latest analysis for Guangzhou R&F Properties
The Last 12 Months Of Insider Transactions At Guangzhou R&F Properties
In fact, the recent purchase by Sze Lim Li was the biggest purchase of Guangzhou R&F Properties shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$10.08). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Sze Lim Li was the only individual insider to buy shares in the last twelve months.
Sze Lim Li bought a total of 4.00m shares over the year at an average price of HK$10.58. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Guangzhou R&F Properties 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 of Guangzhou R&F Properties
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Guangzhou R&F Properties insiders own 62% of the company, worth about HK$22b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Guangzhou R&F Properties Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Guangzhou R&F Properties. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Guangzhou R&F Properties (1 doesn't sit too well with us!) that we believe deserve your full attention.