Stock Analysis

Have Chi Kan Holdings Limited (HKG:9913) Insiders Been Selling Their Stock?

SEHK:9913
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We'd be surprised if Chi Kan Holdings Limited (HKG:9913) shareholders haven't noticed that an insider, Chun Kit Ho, recently sold HK$3.2m worth of stock at HK$2.43 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Chi Kan Holdings

The Last 12 Months Of Insider Transactions At Chi Kan Holdings

In fact, the recent sale by Chun Kit Ho was the biggest sale of Chi Kan 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 slightly below the current price (HK$2.75). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 0.7% of Chun Kit Ho's stake.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
SEHK:9913 Insider Trading Volume March 3rd 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Chi Kan Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Chi Kan Holdings insiders own about HK$2.1b worth of shares (which is 75% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Chi Kan Holdings Tell Us?

An insider hasn't bought Chi Kan 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. On the plus side, Chi Kan Holdings makes money, and is growing profits. 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. 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. Case in point: We've spotted 2 warning signs for Chi Kan Holdings you should be aware of.

But note: Chi Kan 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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