Don't Ignore The Fact That This Insider Just Sold Some Shares In Haitian International Holdings Limited (HKG:1882)

We note that the Haitian International Holdings Limited (HKG:1882) Executive Director, Weiqun Chen, recently sold HK$596k worth of stock for HK$29.80 per share. However we note that the sale only shrunk their holding by 7.4%.

View our latest analysis for Haitian International Holdings

Haitian International Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Senior VP of Sales & Marketing and Executive Director Jianfeng Zhang for HK$13m worth of shares, at about HK$13.45 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$29.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Haitian International 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of Haitian International Holdings shares, worth about HK$301m. 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 Do The Haitian International Holdings Insider Transactions Indicate?

Insiders sold Haitian International Holdings shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. 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. At Simply Wall St, we found 2 warning signs for Haitian International Holdings that deserve your attention before buying any shares.

But note: Haitian International 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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