Shares of TD Holdings (NASDAQ:GLG) gained about 12% in the pre-market trading session on Thursday on a major insider buy transaction. The company offers direct loans and loan guarantee services to small-to-medium-sized businesses, farmers, and individuals.
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A more than 10% owner of TD Holdings’ stock, Shuxiang Zhang, recently bought 10 million shares of the company at an average price of $1.21 per share. The total purchase consideration stands at $12.1 million.
It is worth mentioning that in November, Zhang made a similar insider buy transaction worth $11.5 million. The total value of GLG shares in his portfolio currently stands at $30.7 million.
Overall, corporate insiders have bought GLG stock worth $35.1 million over the last three months. TipRanks’ Insider Trading Activity Tool shows that insider confidence in GLG stock is currently Positive.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is TD Holdings a Good Stock to Buy?
GLG stock is down more than 22% over the past year. This drop in price presents a good opportunity for investors to buy the stock, as it seems undervalued at its current price.
The price/sales ratio of 0.46x reflects a discount of 67% from the sector’s average of 1.39x. Moreover, positive insider trading activity suggests the potential for continued growth in the future.
