This Insider Has Just Sold Shares In China Tonghai International Financial Limited (HKG:952)

Investors may wish to note that the Non-Executive Director of China Tonghai International Financial Limited, Bernard Pouliot, recently netted HK$67k from selling stock, receiving an average price of HK$0.34. However we note that the sale only shrunk their holding by 0.5%.

See our latest analysis for China Tonghai International Financial

The Last 12 Months Of Insider Transactions At China Tonghai International Financial

In fact, the recent sale by Bernard Pouliot was the biggest sale of China Tonghai International Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (HK$0.35). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 0.5%of Bernard Pouliot's holding.

Bernard Pouliot ditched 300000 shares over the year. The average price per share was HK$0.33. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does China Tonghai International Financial Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that China Tonghai International Financial insiders own 2.5% of the company, worth about HK$55m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The China Tonghai International Financial Insider Transactions Indicate?

An insider sold China Tonghai International Financial shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - China Tonghai International Financial has 3 warning signs we think you should be aware of.

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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 spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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