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

We'd be surprised if Haitian International Holdings Limited (HKG:1882) shareholders haven't noticed that the Non-Executive Director, Mingguang Guo, recently sold HK$1.6m worth of stock at HK$32.00 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.

See our latest analysis for Haitian International Holdings

Haitian International Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Mingguang Guo is the biggest insider sale of Haitian International Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of HK$30.00. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Haitian International Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Haitian International Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of Haitian International Holdings shares, worth about HK$310m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Haitian International Holdings Insiders?

Insiders haven't bought Haitian International Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Haitian International Holdings is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Haitian International Holdings has 2 warning signs we think you should be aware of.

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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