Have Insiders Been Selling Cool Link (Holdings) Limited (HKG:8491) Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Cool Link (Holdings) Limited (HKG:8491).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Cool Link (Holdings)

Cool Link (Holdings) Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Yan Zhang, for HK$9.1m worth of shares, at about HK$0.26 per share. That means that an insider was selling shares at around the current price of HK$0.23. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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). Yan Zhang was the only individual insider to sell over the last year. Notably Yan Zhang was also the biggest buyer, having purchased HK$541k worth of shares.

Yan Zhang ditched 36.40m shares over the year. The average price per share was S$0.30. 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!

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

Does Cool Link (Holdings) Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Cool Link (Holdings) insiders own about HK$12m worth of shares (which is 8.1% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Cool Link (Holdings) Tell Us?

It doesn't really mean much that no insider has traded Cool Link (Holdings) shares in the last quarter. Still, the insider transactions at Cool Link (Holdings) in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cool Link (Holdings). Every company has risks, and we've spotted 2 warning signs for Cool Link (Holdings) (of which 1 shouldn't be ignored!) you should know about.

But note: Cool Link (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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