This Insider Has Just Sold Shares In Ka Shui International Holdings Limited (HKG:822)

Some Ka Shui International Holdings Limited (HKG:822) shareholders may be a little concerned to see that the Founder & Chairman, Yuen Fat Lee, recently sold a substantial HK$14m worth of stock at a price of HK$0.85 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.7%.

See our latest analysis for Ka Shui International Holdings

The Last 12 Months Of Insider Transactions At Ka Shui International Holdings

Notably, that recent sale by Yuen Fat Lee is the biggest insider sale of Ka Shui International Holdings shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.69. So it may not tell us anything about how insiders feel about the current share price.

Yuen Fat Lee sold a total of 40.00m shares over the year at an average price of HK$0.81. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership of Ka Shui International Holdings

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Ka Shui International Holdings insiders own 70% of the company, worth about HK$478m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Ka Shui International Holdings Tell Us?

An insider hasn't bought Ka Shui International Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Ka Shui International Holdings is growing earnings. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ka Shui International Holdings. At Simply Wall St, we found 4 warning signs for Ka Shui International Holdings that deserve your attention before buying any shares.

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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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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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