Stock Analysis

Have Insiders Sold Haidilao International Holding Ltd. (HKG:6862) Shares Recently?

SEHK:6862
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We wouldn't blame Haidilao International Holding Ltd. (HKG:6862) shareholders if they were a little worried about the fact that Yonghong Shi, the Executive Director recently netted about HK$4.7b selling shares at an average price of HK$62.88. However, that sale only accounted for 8.9% of their holding, so arguably it doesn't say much about their conviction.

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Haidilao International Holding Insider Transactions Over The Last Year

Notably, that recent sale by Yonghong Shi is the biggest insider sale of Haidilao International Holding shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$59.90. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Haidilao International Holding insiders didn't buy any shares over the last year. 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!

insider-trading-volume
SEHK:6862 Insider Trading Volume January 14th 2021

I will like Haidilao International Holding better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Haidilao International Holding insiders own 50% of the company, worth about HK$164b. 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 Haidilao International Holding Insider Transactions Indicate?

An insider hasn't bought Haidilao International Holding stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Haidilao International Holding. Be aware that Haidilao International Holding is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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, but not derivative transactions.

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