Stock Analysis

Have China Fordoo Holdings Limited (HKG:2399) Insiders Been Selling Their Stock?

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We wouldn't blame China Fordoo Holdings Limited (HKG:2399) shareholders if they were a little worried about the fact that Kin Sun Kwok, the Founder & Chairman recently netted about HK$7.3m selling shares at an average price of HK$3.48. However, that sale only accounted for 0.2% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for China Fordoo Holdings

China Fordoo Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Kin Sun Kwok is the biggest insider sale of China Fordoo Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$3.21. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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!

SEHK:2399 Insider Trading Volume December 29th 2020

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 China Fordoo Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Fordoo Holdings insiders own 62% of the company, currently worth about HK$3.9b based on the recent share price. 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 China Fordoo Holdings Tell Us?

An insider sold China Fordoo Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Fordoo Holdings. When we did our research, we found 4 warning signs for China Fordoo Holdings (2 are concerning!) that we believe deserve your full attention.

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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