Don't Ignore The Fact That This Insider Just Sold Some Shares In Super Strong Holdings Limited (HKG:8262)

We note that a Super Strong Holdings Limited (HKG:8262) insider, Kin Kee Lee, recently sold HK$745k worth of stock for HK$0.25 per share. On the bright side, that's just a small sale and only reduced their holding by 1.9%.

View our latest analysis for Super Strong Holdings

The Last 12 Months Of Insider Transactions At Super Strong Holdings

In fact, the recent sale by Kin Kee Lee was the biggest sale of Super Strong Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (HK$0.25). 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. We note that the biggest single sale was only 1.9%of Kin Kee Lee's holding.

Kin Kee Lee divested 5.08m shares over the last 12 months at an average price of HK$0.27. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Super Strong 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. We usually like to see fairly high levels of insider ownership. Super Strong Holdings insiders own 75% of the company, currently worth about HK$149m based on the recent share price. 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 Super Strong Holdings Insider Transactions Indicate?

An insider hasn't bought Super Strong 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 4 warning signs with Super Strong Holdings and understanding these should be part of your investment process.

But note: Super Strong Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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