Independent Non-Executive Director Cheung Chuen Lam Just Sold A Bunch Of Shares In Ten Pao Group Holdings Limited (HKG:1979)

Anyone interested in Ten Pao Group Holdings Limited (HKG:1979) should probably be aware that the Independent Non-Executive Director, Cheung Chuen Lam, recently divested HK$2.3m worth of shares in the company, at an average price of HK$2.30 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Ten Pao Group Holdings

Ten Pao Group Holdings Insider Transactions Over The Last Year

The Chairman & CEO Kwong Yee Hung made the biggest insider purchase in the last 12 months. That single transaction was for HK$2.9m worth of shares at a price of HK$1.44 each. We do like to see buying, but this purchase was made at well below the current price of HK$2.55. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Kwong Yee Hung bought a total of 4.49m shares over the year at an average price of HK$1.20. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Ten Pao Group Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Ten Pao Group Holdings insiders own 66% of the company, worth about HK$1.6b. 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 Do The Ten Pao Group Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Ten Pao Group Holdings. Looks promising! 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. In terms of investment risks, we've identified 2 warning signs with Ten Pao Group Holdings and understanding these should be part of your investment process.

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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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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