Stock Analysis

Have Fu Shou Yuan International Group Limited (HKG:1448) Insiders Been Selling Their Stock?

SEHK:1448
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Some Fu Shou Yuan International Group Limited (HKG:1448) shareholders may be a little concerned to see that the Chief Executive & Executive Director, Jisheng Wang, recently sold a substantial HK$40m worth of stock at a price of HK$8.00 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.7%.

See our latest analysis for Fu Shou Yuan International Group

Fu Shou Yuan International Group Insider Transactions Over The Last Year

Notably, that recent sale by Jisheng Wang is the biggest insider sale of Fu Shou Yuan International Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of HK$7.27. 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 the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:1448 Insider Trading Volume December 22nd 2020

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

Insider Ownership of Fu Shou Yuan International Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Fu Shou Yuan International Group insiders own 11% of the company, worth about HK$1.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Fu Shou Yuan International Group Tell Us?

An insider hasn't bought Fu Shou Yuan International Group 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. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Fu Shou Yuan International Group.

But note: Fu Shou Yuan International Group 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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