Have Kwung's Aroma Holdings Insiders Been Selling Stock?

Anyone interested in Kwung's Aroma Holdings Limited (HKG:1925) should probably be aware that the Executive Chairman & CEO, Jianxin Jin, recently divested HK$2.6m worth of shares in the company, at an average price of HK$1.30 each. However, the silver lining is that the sale only reduced their total holding by 0.8%, so we're hesitant to read anything much into it, on its own.

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Kwung's Aroma Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Jianxin Jin is the biggest insider sale of Kwung's Aroma Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of HK$1.27. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Kwung's Aroma Holdings

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Insider Ownership Of Kwung's Aroma Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Kwung's Aroma Holdings insiders own 62% of the company, currently worth about HK$317m 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.

What Might The Insider Transactions At Kwung's Aroma Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Kwung's Aroma Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 3 warning signs for Kwung's Aroma Holdings and we suggest you have a look.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.