Executive Director Siu Sze Tse Just Sold A Bunch Of Shares In L.K. Technology Holdings Limited (HKG:558)

We wouldn't blame L.K. Technology Holdings Limited (HKG:558) shareholders if they were a little worried about the fact that Siu Sze Tse, the Executive Director recently netted about HK$4.9m selling shares at an average price of HK$4.00. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for L.K. Technology Holdings

L.K. Technology Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Siu Sze Tse was the biggest sale of L.K. Technology Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$4.10, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 100% of Siu Sze Tse'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!

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Does L.K. Technology 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. I reckon it's a good sign if insiders own a significant number of shares in the company. L.K. Technology Holdings insiders own about HK$3.1b worth of shares (which is 65% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The L.K. Technology Holdings Insider Transactions Indicate?

An insider hasn't bought L.K. Technology Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. 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. Every company has risks, and we've spotted 3 warning signs for L.K. Technology Holdings you should know about.

Of course L.K. Technology Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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