Stock Analysis

Have Pizu Group Holdings Limited (HKG:8053) Insiders Been Selling Their Stock?

SEHK:8053
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We note that a Pizu Group Holdings Limited (HKG:8053) insider, Man Li, recently sold HK$559k worth of stock for HK$0.80 per share. On the bright side, that's just a small sale and only reduced their holding by 0.3%.

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The Last 12 Months Of Insider Transactions At Pizu Group Holdings

Notably, that recent sale by Man Li is the biggest insider sale of Pizu Group Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$0.78. 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.

Over the last year, we can see that insiders have bought 440.00k shares worth HK$157k. On the other hand they divested 700.00k shares, for HK$559k. 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!

insider-trading-volume
SEHK:8053 Insider Trading Volume February 9th 2021

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Insider Ownership of Pizu Group Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Pizu Group Holdings insiders own about HK$2.3b worth of shares (which is 80% 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.

What Might The Insider Transactions At Pizu Group Holdings Tell Us?

An insider hasn't bought Pizu Group Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Pizu Group Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pizu Group Holdings. Case in point: We've spotted 1 warning sign for Pizu Group Holdings you should be aware of.

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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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