Stock Analysis

Have Insiders Sold Chi Kan Holdings Limited (HKG:9913) Shares Recently?

SEHK:9913
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We wouldn't blame Chi Kan Holdings Limited (HKG:9913) shareholders if they were a little worried about the fact that Chun Kit Ho, a company insider, recently netted about HK$5.2m selling shares at an average price of HK$3.11. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.9%.

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Chi Kan Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Chun Kit Ho is the biggest insider sale of Chi Kan 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$2.58. So it is hard to draw any strong conclusion from it.

Chun Kit Ho sold a total of 2.96m shares over the year at an average price of HK$2.81. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:9913 Insider Trading Volume March 17th 2021

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Chi Kan Holdings insiders own 75% of the company, worth about HK$2.9b. 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 Chi Kan Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Chi Kan Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Every company has risks, and we've spotted 2 warning signs for Chi Kan Holdings you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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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