How Many Shanghai Realway Capital Assets Management Co., Ltd. (HKG:1835) Shares Have Insiders Sold, In The Last Year?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Shanghai Realway Capital Assets Management Co., Ltd. (HKG:1835).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Shanghai Realway Capital Assets Management

The Last 12 Months Of Insider Transactions At Shanghai Realway Capital Assets Management

The insider, Fung Shing Leung, made the biggest insider sale in the last 12 months. That single transaction was for HK$960k worth of shares at a price of HK$4.80 each. So what is clear is that an insider saw fit to sell at around the current price of HK$4.50. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Fung Shing Leung was the only individual insider to sell shares in the last twelve months.

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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Shanghai Realway Capital Assets Management insiders own about HK$643m worth of shares (which is 87% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Shanghai Realway Capital Assets Management Insider Transactions Indicate?

The fact that there have been no Shanghai Realway Capital Assets Management insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Shanghai Realway Capital Assets Management insiders selling. While we like knowing 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. Be aware that Shanghai Realway Capital Assets Management is showing 2 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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