Alpha Professional Holdings Insiders Selling HK$7.1m In Stock Relieved As Market Cap Slides To HK$93m

Insiders seem to have made the most of their holdings by selling HK$7.1m worth of Alpha Professional Holdings Limited (HKG:948) stock at an average sell price of HK$0.24 during the past year. The company's market valuation decreased by HK$16m after the stock price dropped 15% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Alpha Professional Holdings Insider Transactions Over The Last Year

The insider, Sok Un Chong, made the biggest insider sale in the last 12 months. That single transaction was for HK$6.7m worth of shares at a price of HK$0.24 each. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.27. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 14% of Sok Un Chong's holding.

Alpha Professional Holdings insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Alpha Professional Holdings

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Alpha Professional Holdings Insiders Are Selling The Stock

The last three months saw significant insider selling at Alpha Professional Holdings. In total, insiders sold HK$7.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Alpha Professional Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Alpha Professional Holdings insiders own about HK$53m worth of shares (which is 57% of the company). 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 Alpha Professional Holdings Tell Us?

Insiders haven't bought Alpha Professional Holdings stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alpha Professional Holdings. Every company has risks, and we've spotted 5 warning signs for Alpha Professional Holdings (of which 3 can't be ignored!) you should know about.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.