Keep An Eye On Legend Strategy International Holdings Group As Insider Stock Selling Hits HK$13m

Despite the fact that Legend Strategy International Holdings Group Company Limited (HKG:1355) stock rose 14% last week, insiders who sold HK$13m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of HK$0.26, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Legend Strategy International Holdings Group

Legend Strategy International Holdings Group Insider Transactions Over The Last Year

The Non-Executive Chairman, Fuer Yuan, made the biggest insider sale in the last 12 months. That single transaction was for HK$8.0m worth of shares at a price of HK$0.25 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.19). So it may not shed much light on insider confidence at current levels. Fuer Yuan was the only individual insider to sell shares in the last twelve months.

Fuer Yuan sold a total of 52.02m shares over the year at an average price of HK$0.26. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Legend Strategy International Holdings Group

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. We usually like to see fairly high levels of insider ownership. Legend Strategy International Holdings Group insiders own about HK$59m 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 Legend Strategy International Holdings Group Tell Us?

The fact that there have been no Legend Strategy International Holdings Group insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Legend Strategy International Holdings Group insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Legend Strategy International Holdings Group.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.