Have Star CM Holdings Insiders Been Selling Stock?

Some Star CM Holdings Limited (HKG:6698) shareholders may be a little concerned to see that the Executive Chairman & CEO, Ming Tian, recently sold a substantial HK$21m worth of stock at a price of HK$6.04 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.4%.

See our latest analysis for Star CM Holdings

Star CM Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Ming Tian was the biggest sale of Star CM Holdings shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$4.21. So it may not tell us anything about how insiders feel about the current share price.

Ming Tian ditched 5.18m shares over the year. The average price per share was CN¥6.09. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Star CM Holdings insiders own about HK$336m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Star CM Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Star CM Holdings is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

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.

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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.