Stock Analysis

This Insider Has Just Sold Shares In HSBC Holdings plc (LON:HSBA)

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We'd be surprised if HSBC Holdings plc (LON:HSBA) shareholders haven't noticed that the Group CEO, Noel Quinn, recently sold UK£236k worth of stock at UK£5.74 per share. However, the silver lining is that the sale only reduced their total holding by 1.0%, so we're hesitant to read anything much into it, on its own.

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HSBC Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Noel Quinn was the biggest sale of HSBC Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of UK£5.54. 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.

Over the last year, we can see that insiders have bought 31.57k shares worth UK£160k. But they sold 62.89k shares for UK£361k. In total, HSBC Holdings insiders sold more 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

LSE:HSBA Insider Trading Volume March 22nd 2023

I will like HSBC 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 Of HSBC Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that HSBC Holdings insiders own 0.05% of the company, worth about UK£52m. 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 HSBC Holdings Insiders?

The insider sales have outweighed the insider buying, at HSBC Holdings, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since HSBC Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with HSBC Holdings and understanding them should be part of your investment process.

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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