This Insider Has Just Sold Shares In Gemini Investments (Holdings) Limited (HKG:174)

We wouldn't blame Gemini Investments (Holdings) Limited (HKG:174) shareholders if they were a little worried about the fact that Xiao Wang, a company insider, recently netted about HK$35m selling shares at an average price of HK$1.12. That diminished their holding by a very significant 67%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Gemini Investments (Holdings)

The Last 12 Months Of Insider Transactions At Gemini Investments (Holdings)

Notably, that recent sale by Xiao Wang is the biggest insider sale of Gemini Investments (Holdings) shares that we've seen in the last year. That means that an insider was selling shares at around the current price of HK$1.08. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

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

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 14% of Gemini Investments (Holdings) shares, worth about HK$99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Gemini Investments (Holdings) Insider Transactions Indicate?

An insider hasn't bought Gemini Investments (Holdings) stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gemini Investments (Holdings). In terms of investment risks, we've identified 4 warning signs with Gemini Investments (Holdings) and understanding them should be part of your investment process.

Of course Gemini Investments (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, but not derivative transactions.

If you’re looking to trade Gemini Investments (Holdings), open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.