Some EPI (Holdings) Limited (HKG:689) shareholders may be a little concerned to see that the Chairman & CEO, Zhiyi Liu, recently sold a whopping HK$35m worth of stock at a price of HK$0.035 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
EPI (Holdings) Insider Transactions Over The Last Year
In fact, the recent sale by Zhiyi Liu was the biggest sale of EPI (Holdings) shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$0.038, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Zhiyi Liu's holding.
The chart below shows insider transactions (by 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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Does EPI (Holdings) Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. EPI (Holdings) insiders own about HK$48m worth of shares. That equates to 23% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At EPI (Holdings) Tell Us?
An insider sold EPI (Holdings) 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 while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for EPI (Holdings) you should be aware of.
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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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. 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. Thank you for reading.
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