This Insider Has Just Sold Shares In Chi Kan Holdings Limited (HKG:9913)

By
Simply Wall St
Published
February 16, 2022
SEHK:9913
Source: Shutterstock

We wouldn't blame Chi Kan Holdings Limited (HKG:9913) shareholders if they were a little worried about the fact that Hon Kwong Lo, the Executive Chairman of the Board recently netted about HK$9.9m selling shares at an average price of HK$3.30. However, that sale only accounted for 0.5% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Chi Kan Holdings

Chi Kan Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Hon Kwong Lo was the biggest sale of Chi Kan Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$3.28. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Chi Kan Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 February 16th 2022

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).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Chi Kan Holdings insiders own 72% of the company, currently worth about HK$2.4b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Chi Kan Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Chi Kan Holdings (2 make us uncomfortable!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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