Don't Ignore The Fact That This Insider Just Sold Some Shares In Vinco Financial Group Limited (HKG:8340)

Anyone interested in Vinco Financial Group Limited (HKG:8340) should probably be aware that the Founder, Ho Yan Chung, recently divested HK$1.9m worth of shares in the company, at an average price of HK$0.37 each. On the bright side, that sale was only 1.5% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Vinco Financial Group

Vinco Financial Group Insider Transactions Over The Last Year

In fact, the recent sale by Ho Yan Chung was the biggest sale of Vinco Financial Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.40. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 1.5% of Ho Yan Chung's holding.

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 Vinco Financial 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

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. Vinco Financial Group insiders own 54% of the company, currently worth about HK$134m 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 Do The Vinco Financial Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Vinco Financial Group (1 is a bit unpleasant!) that we believe deserve your full attention.

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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