Possible Bearish Signals With Palasino Holdings Insiders Disposing Stock

The fact that multiple Palasino Holdings Limited (HKG:2536) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

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 Palasino Holdings

Palasino Holdings Insider Transactions Over The Last Year

The insider, Yang Fang, made the biggest insider sale in the last 12 months. That single transaction was for HK$148m worth of shares at a price of HK$2.77 each. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$2.99. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 74% of Yang Fang's holding.

Palasino 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Palasino 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. Our data indicates that Palasino Holdings insiders own about HK$61m worth of shares (which is 2.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Palasino Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Palasino Holdings shares in the last quarter. We don't take much encouragement from the transactions by Palasino Holdings insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Palasino Holdings. Case in point: We've spotted 3 warning signs for Palasino Holdings you should be aware of, and 1 of them can't be ignored.

Of course Palasino Holdings 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.