Have FDG Electric Vehicles Limited (HKG:729) Insiders Been Selling Their Stock?

We note that the FDG Electric Vehicles Limited (HKG:729) Chairman, Zhong Cao, recently sold HK$73k worth of stock for HK$0.22 per share. However we note that the sale only shrunk their holding by 0.5%.

View our latest analysis for FDG Electric Vehicles

The Last 12 Months Of Insider Transactions At FDG Electric Vehicles

Over the last year, we can see that the biggest insider purchase was by insider Zheng Wang for HK$2.7m worth of shares, at about HK$0.21 per share. That means that even when the share price was higher than HK$0.20 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Zheng Wang.

Zheng Wang bought 20.19m shares over the last 12 months at an average price of HK$0.23. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:729 Recent Insider Trading, January 26th 2020
SEHK:729 Recent Insider Trading, January 26th 2020

FDG Electric Vehicles is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does FDG Electric Vehicles Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that FDG Electric Vehicles insiders own 16% of the company, worth about HK$64m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At FDG Electric Vehicles Tell Us?

An insider hasn’t bought FDG Electric Vehicles stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. It’s good to see insiders are shareholders. So we’re not overly bothered by recent selling. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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