Trade Alert: Co-Founder Of Value Partners Group Cheng Hye Cheah Has Sold Stock

We wouldn't blame Value Partners Group Limited (HKG:806) shareholders if they were a little worried about the fact that Cheng Hye Cheah, the Co-Founder recently netted about HK$668m selling shares at an average price of HK$3.00. That's a big disposal, and it decreased their holding size by 48%, which is notable but not too bad.

View our latest analysis for Value Partners Group

The Last 12 Months Of Insider Transactions At Value Partners Group

In fact, the recent sale by Cheng Hye Cheah was the biggest sale of Value Partners Group shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$2.03. So it is hard to draw any strong conclusion from it.

Value Partners Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Value Partners Group 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 Of Value Partners Group

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. Value Partners Group insiders own 44% of the company, currently worth about HK$1.6b based on the recent share price. 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 Does This Data Suggest About Value Partners Group Insiders?

Insiders haven't bought Value Partners Group 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Value Partners Group. For example - Value Partners Group has 1 warning sign we think you should be aware of.

But note: Value Partners Group 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.