Yahoo Finance Bullish insiders bet US$1.0m on GSTechnologies Ltd. (LON:GST)
Multiple insiders secured a larger position in GSTechnologies Ltd. (LON:GST) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for GSTechnologies
The Last 12 Months Of Insider Transactions At GSTechnologies
The CEO & Executive Director Guo Bai made the biggest insider purchase in the last 12 months. That single transaction was for UK£900k worth of shares at a price of UK£0.02 each. So it's clear an insider wanted to buy, at around the current price, which is UK£0.022. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the GSTechnologies insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 51.00m shares worth UK£1.0m. On the other hand they divested 50.00m shares, for UK£1m. In total, GSTechnologies insiders bought more than they sold over the last year. 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!
GSTechnologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of GSTechnologies
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that GSTechnologies insiders own 36% of the company, worth about UK£12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About GSTechnologies Insiders?
The fact that there have been no GSTechnologies insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in GSTechnologies and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, GSTechnologies has 5 warning signs (and 2 which are potentially serious) we think you should know about.
But note: GSTechnologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
