Crypto Flow Technology Insiders Got A Good Deal Selling At HK$0.47

While Crypto Flow Technology Limited (HKG:8198) shareholders have had a good week with the stock up 16%, they shouldn't let their guards down. The fact that insiders chose to dispose of HK$2.7m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our free stock report includes 2 warning signs investors should be aware of before investing in Crypto Flow Technology. Read for free now.

The Last 12 Months Of Insider Transactions At Crypto Flow Technology

The insider, Hin Ming Yeung, made the biggest insider sale in the last 12 months. That single transaction was for HK$2.3m worth of shares at a price of HK$0.48 each. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$2.07. 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 only 10% of Hin Ming Yeung's holding. Hin Ming Yeung was the only individual insider to sell shares in the last twelve months.

Hin Ming Yeung sold a total of 5.72m shares over the year at an average price of HK$0.47. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Crypto Flow Technology

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 6.5% of Crypto Flow Technology shares, worth about HK$88m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Crypto Flow Technology Tell Us?

The fact that there have been no Crypto Flow Technology insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Crypto Flow Technology insiders. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of 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 help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Crypto Flow Technology.

Of course Crypto Flow Technology 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.