Potential Greenpro Capital Corp. (NASDAQ:GRNQ) shareholders may wish to note that the President, Chong Kuang Lee, recently bought US$100k worth of stock, paying US$1.52 for each share. Although the purchase only increased their holding by 3.2%, it is still a solid purchase in our view.

Greenpro Capital Insider Transactions Over The Last Year

In fact, the recent purchase by President Chong Kuang Lee was not their only acquisition of Greenpro Capital shares this year. They previously made an even bigger purchase of US$250k worth of shares at a price of US$2.33 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.43). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Chong Kuang Lee was the only individual insider to buy during the last year.

Chong Kuang Lee purchased 201.85k shares over the year. The average price per share was US$1.98. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Greenpro Capital

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Greenpro Capital insiders own 38% of the company, worth about US$10m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Greenpro Capital Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Greenpro Capital we think they are probably pretty confident of a bright future. While it's good to be aware of 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. Be aware that Greenpro Capital is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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.