Stock Analysis

Insider Sellers Might Regret Selling Tsit Wing International Holdings Shares at a Lower Price Than Current Market Value

SEHK:2119
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Even though Tsit Wing International Holdings Limited (HKG:2119) has fallen by 12% over the past week , insiders who sold HK$133m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of HK$0.88 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Tsit Wing International Holdings

The Last 12 Months Of Insider Transactions At Tsit Wing International Holdings

The Chairman & CEO, Tat Tong Wong, made the biggest insider sale in the last 12 months. That single transaction was for HK$133m worth of shares at a price of HK$0.88 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$0.53. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Tat Tong Wong.

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

insider-trading-volume
SEHK:2119 Insider Trading Volume January 23rd 2024

I will like Tsit Wing International Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tsit Wing International Holdings insiders own about HK$193m worth of shares (which is 51% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Tsit Wing International Holdings Tell Us?

The fact that there have been no Tsit Wing International Holdings insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Tsit Wing International Holdings insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Tsit Wing International Holdings.

But note: Tsit Wing International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.