Don't Ignore The Fact That This Insider Just Sold Some Shares In Sang Hing Holdings (International) Limited (HKG:1472)

Anyone interested in Sang Hing Holdings (International) Limited (HKG:1472) should probably be aware that the Executive Director, Ying Wah Lai, recently divested HK$2.4m worth of shares in the company, at an average price of HK$0.35 each. On the bright side, that sale was only 8.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Sang Hing Holdings (International)

Sang Hing Holdings (International) Insider Transactions Over The Last Year

Notably, that recent sale by Ying Wah Lai is the biggest insider sale of Sang Hing Holdings (International) 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$0.35. 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.

In total, Sang Hing Holdings (International) 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Sang Hing Holdings (International) 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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Sang Hing Holdings (International) insiders own about HK$263m worth of shares (which is 75% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Sang Hing Holdings (International) Insiders?

Insiders sold Sang Hing Holdings (International) shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For instance, we've identified 5 warning signs for Sang Hing Holdings (International) (1 doesn't sit too well with us) you should be aware of.

Of course Sang Hing Holdings (International) may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

When trading Sang Hing Holdings (International) or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.