Have HSBC Holdings Insiders Been Selling Stock?

Some HSBC Holdings plc (LON:HSBA) shareholders may be a little concerned to see that the Group CFO & Executive Director, Manveen Kaur, recently sold a substantial UK£810k worth of stock at a price of UK£9.26 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 4.1%.

View our latest analysis for HSBC Holdings

The Last 12 Months Of Insider Transactions At HSBC Holdings

Notably, that recent sale by Manveen Kaur is the biggest insider sale of HSBC Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of UK£8.76. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in HSBC Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of HSBC Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that HSBC Holdings insiders own 0.05% of the company, worth about UK£85m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At HSBC Holdings Tell Us?

Unfortunately, there has been more insider selling of HSBC Holdings stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that HSBC Holdings is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. While conducting our analysis, we found that HSBC Holdings has 2 warning signs and it would be unwise to ignore them.

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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.