We wouldn’t blame Hong Kong Exchanges and Clearing Limited (HKG:388) shareholders if they were a little worried about the fact that Xiaojia Li, the CEO & Executive Director recently netted about HK$167m selling shares at an average price of HK$257. That diminished their holding by a very significant 86%, which arguably implies a strong desire to reallocate capital.
Hong Kong Exchanges and Clearing Insider Transactions Over The Last Year
Notably, that recent sale by Xiaojia Li is the biggest insider sale of Hong Kong Exchanges and Clearing shares that we’ve seen in the last year. So we know that an insider sold shares at around the present share price of HK$256. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. Insiders own 0.09% of Hong Kong Exchanges and Clearing shares, worth about HK$295m. 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 Hong Kong Exchanges and Clearing Insiders?
An insider sold Hong Kong Exchanges and Clearing shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Hong Kong Exchanges and Clearing.
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, but not derivative transactions.
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