Stock Analysis

Have Insiders Sold HC Group Inc. (HKG:2280) Shares Recently?

SEHK:2280
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We note that a HC Group Inc. (HKG:2280) insider, Lemin Zhu, recently sold HK$404k worth of stock for HK$1.05 per share. However we note that the sale only shrunk their holding by 0.3%.

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HC Group Insider Transactions Over The Last Year

Notably, that recent sale by insider Lemin Zhu was not the only time they traded HC Group shares this year. They previously purchased HK$144m worth of shares at a price of HK$1.20 per share. That means that an insider was happy to buy shares at above the current price of HK$1.04. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Lemin Zhu was also the biggest seller.

In the last twelve months insiders purchased 200.00m shares for HK$240m. On the other hand they divested 385.00k shares, for HK$404k. Overall, HC Group insiders were net buyers during 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!

insider-trading-volume
SEHK:2280 Insider Trading Volume January 31st 2021

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.

Does HC Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. HC Group insiders own about HK$470m worth of shares. That equates to 35% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At HC Group Tell Us?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. 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. For instance, we've identified 4 warning signs for HC Group (2 shouldn't be ignored) you should be aware of.

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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