Have Vitasoy International Holdings Limited (HKG:345) Insiders Been Selling Their Stock?

We wouldn't blame Vitasoy International Holdings Limited (HKG:345) shareholders if they were a little worried about the fact that Mo-Ling Lo, the Non-Executive Director recently netted about HK$8.4m selling shares at an average price of HK$33.75. However, that sale only accounted for 1.1% of their holding, so arguably it doesn't say much about their conviction.

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Vitasoy International Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Mo-Ling Lo was the biggest sale of Vitasoy International Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$33.55. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Mo-Ling Lo divested 392.00k shares over the last 12 months at an average price of HK$32.82. 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!

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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. We usually like to see fairly high levels of insider ownership. Vitasoy International Holdings insiders own 18% of the company, currently worth about HK$6.4b based on the recent share price. 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 Do The Vitasoy International Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vitasoy International Holdings. In terms of investment risks, we've identified 1 warning sign with Vitasoy International Holdings and understanding it should be part of your investment process.

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.
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