Have Insiders Sold PINE Technology Holdings Limited (HKG:1079) Shares Recently?

We wouldn’t blame PINE Technology Holdings Limited (HKG:1079) shareholders if they were a little worried about the fact that Oi-Lan Hui, a company insider, recently netted about HK$29m selling shares at an average price of HK$0.30. That diminished their holding by a very significant 87%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for PINE Technology Holdings

PINE Technology Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Oi-Lan Hui is the biggest insider sale of PINE Technology Holdings shares that we’ve seen in the last year. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.097). So it may not tell us anything about how insiders feel about the current share price.

You can see a visual depiction of insider transactions (by 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!

SEHK:1079 Recent Insider Trading May 26th 2020
SEHK:1079 Recent Insider Trading May 26th 2020

I will like PINE Technology Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that PINE Technology Holdings insiders own about HK$10m worth of shares (which is 8.3% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.

So What Does This Data Suggest About PINE Technology Holdings Insiders?

An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. 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. Be aware that PINE Technology Holdings is showing 3 warning signs in our investment analysis, and 1 of those shouldn’t be ignored…

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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. Thank you for reading.