Asia-Pac Financial Investment Insiders Miss 11% Gain After Offloading Stock

Even though Asia-Pac Financial Investment Company Limited (HKG:8193) stock gained 11% last week, insiders who sold HK$2.1m worth of stock over the past year are probably better off. Selling at an average price of HK$0.26, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Asia-Pac Financial Investment Insider Transactions Over The Last Year

The insider, Liu Shengnan, made the biggest insider sale in the last 12 months. That single transaction was for HK$2.1m worth of shares at a price of HK$0.26 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.18. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Liu Shengnan. Notably Liu Shengnan was also the biggest buyer, having purchased HK$1.2m worth of shares.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Asia-Pac Financial Investment

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 Of Asia-Pac Financial Investment

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Asia-Pac Financial Investment insiders own about HK$8.8m worth of shares. That equates to 18% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Asia-Pac Financial Investment Insiders?

It doesn't really mean much that no insider has traded Asia-Pac Financial Investment shares in the last quarter. Still, the insider transactions at Asia-Pac Financial Investment in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Asia-Pac Financial Investment is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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

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.