This Insider Has Just Sold Shares In Legend Strategy International Holdings Group

Some Legend Strategy International Holdings Group Company Limited (HKG:1355) shareholders may be a little concerned to see that the Non-Executive Chairman, Fuer Yuan, recently sold a substantial HK$4.0m worth of stock at a price of HK$0.25 per share. However, that sale only accounted for 5.0% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Legend Strategy International Holdings Group

The Last 12 Months Of Insider Transactions At Legend Strategy International Holdings Group

Notably, that recent sale by Fuer Yuan is the biggest insider sale of Legend Strategy International Holdings Group shares that we've seen in the last year. That means that even when the share price was below the current price of HK$0.34, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 5.0%of Fuer Yuan's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Legend Strategy International Holdings Group insiders own about HK$108m worth of shares (which is 72% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Legend Strategy International Holdings Group Insiders?

An insider sold Legend Strategy International Holdings Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Legend Strategy International Holdings Group (of which 3 are concerning!) you should know about.

Of course Legend Strategy International Holdings Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.