Have Insiders Sold Vitasoy International Holdings Limited (HKG:345) Shares Recently?

Anyone interested in Vitasoy International Holdings Limited (HKG:345) should probably be aware that the Non-Executive Director, Mo-Ling Lo, recently divested HK$2.0m worth of shares in the company, at an average price of HK$31.18 each. However, the silver lining is that the sale only reduced their total holding by 0.3%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Vitasoy International Holdings

The Last 12 Months Of Insider Transactions At Vitasoy International Holdings

Over the last year, we can see that the biggest insider sale was by the Group CEO & Executive Director , Roberto Guidetti, for HK$2.1m worth of shares, at about HK$27.20 per share. That means that even when the share price was below the current price of HK$30.70, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 1.7% of Roberto Guidetti's holding.

Insiders in Vitasoy International Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Vitasoy International Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Vitasoy International Holdings insiders own 18% of the company, worth about HK$5.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Vitasoy International Holdings Insiders?

An insider sold Vitasoy International Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Vitasoy International Holdings you should know about.

Of course Vitasoy International Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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