Insiders In F8 Enterprises (Holdings) Group Left Out From 20% Price Rise After Disposing Stock

Despite a 20% gain in F8 Enterprises (Holdings) Group Limited's (HKG:8347) stock price this week, shareholders shouldn't let up. Although prices were relatively low, insiders chose to sell HK$966k worth of stock in the past 12 months. This could be a sign of impending weakness.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for F8 Enterprises (Holdings) Group

The Last 12 Months Of Insider Transactions At F8 Enterprises (Holdings) Group

The Founder, Chun Man Fong, made the biggest insider sale in the last 12 months. That single transaction was for HK$966k worth of shares at a price of HK$0.16 each. While insider selling is a negative, to us, it is more negative if the shares are sold 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$0.073. So it is hard to draw any strong conclusion from it. Chun Man Fong was the only individual insider to sell 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. F8 Enterprises (Holdings) Group insiders own 51% of the company, currently worth about HK$5.1m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About F8 Enterprises (Holdings) Group Insiders?

It doesn't really mean much that no insider has traded F8 Enterprises (Holdings) Group shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the F8 Enterprises (Holdings) Group insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that F8 Enterprises (Holdings) Group has 4 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis.

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 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.