Independent Non-Executive Director Yifei Li Just Sold A Bunch Of Shares In Chong Kin Group Holdings Limited (HKG:1609)

Some Chong Kin Group Holdings Limited (HKG:1609) shareholders may be a little concerned to see that the Independent Non-Executive Director, Yifei Li, recently sold a substantial HK$5.1m worth of stock at a price of HK$5.48 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

View our latest analysis for Chong Kin Group Holdings

The Last 12 Months Of Insider Transactions At Chong Kin Group Holdings

Notably, that recent sale by Yifei Li is the biggest insider sale of Chong Kin Group Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$5.91. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Yifei Li's holding.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Chong Kin Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Chong Kin Group Holdings insiders own 58% of the company, worth about HK$3.7b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Chong Kin Group Holdings Tell Us?

The insider sales have outweighed the insider buying, at Chong Kin Group Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Chong Kin Group Holdings (of which 2 can't be ignored!) you should know about.

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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