53% Of This Tongcheng Travel Holdings Insider's Holdings Were Sold

Viewing insider transactions for Tongcheng Travel Holdings Limited's (HKG:780 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Tongcheng Travel Holdings

Over the last year, we can see that the biggest insider sale was by the Non-Executive Co-Chairman, Jianzhang Liang, for HK$134m worth of shares, at about HK$18.34 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$20.90. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. This single sale was 53% of Jianzhang Liang's stake. The only individual insider seller over the last year was Jianzhang Liang.

Jianzhang Liang sold a total of 14.31m shares over the year at an average price of CN¥19.32. 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!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.3% of Tongcheng Travel Holdings shares, worth about HK$627m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tongcheng Travel Holdings Insider Transactions Indicate?

The fact that there have been no Tongcheng Travel Holdings insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Tongcheng Travel Holdings insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Tongcheng Travel Holdings, you should check out this free report on analyst forecasts for the company.

But note: Tongcheng Travel 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.