Don't Ignore The Fact That This Insider Just Sold Some Shares In Jiyi Holdings Limited (HKG:1495)

We wouldn't blame Jiyi Holdings Limited (HKG:1495) shareholders if they were a little worried about the fact that Shunwei Lin, a company insider, recently netted about HK$14m selling shares at an average price of HK$0.70. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

View our latest analysis for Jiyi Holdings

Jiyi Holdings Insider Transactions Over The Last Year

Notably, that recent sale by insider Shunwei Lin was not the only time they traded Jiyi Holdings shares this year. Earlier in the year, they spent HK$52m to buy shares at HK$0.65 per share. That means that an insider was happy to buy shares at around the current price of HK$0.70. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Jiyi Holdings insiders decided to buy shares at close to current prices. Notably Shunwei Lin was also the biggest seller.

Happily, we note that in the last year insiders paid HK$78m for 115.86m shares. But they sold 20.00m shares for HK$14m. In the last twelve months there was more buying than selling by Jiyi Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Jiyi Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Jiyi 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. Jiyi Holdings insiders own 84% of the company, currently worth about HK$455m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Jiyi Holdings Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Jiyi Holdings stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Jiyi Holdings.

But note: Jiyi Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.
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