Possible Signal As Okura Holdings Insiders Sell JP¥29m In Stock

Last week, Okura Holdings Limited's (HKG:1655) stock jumped 11%, but insiders who sold JP¥29m worth of stock in over the past year are likely to be in a better position. Selling at an average price of JP¥0.40, which is higher than the current price, may have been the wisest decision for these insiders as 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 would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Okura Holdings

Okura Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman & CEO, Katsuya Yamamoto, sold HK$29m worth of shares at a price of HK$0.40 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.14. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Katsuya Yamamoto.

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!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Okura Holdings insiders own 51% of the company, worth about HK$44m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Okura Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Okura Holdings shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Okura Holdings insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Okura Holdings. At Simply Wall St, we found 3 warning signs for Okura Holdings that deserve your attention before buying any shares.

But note: Okura 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 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.