Have Insiders Sold Pine Care Group Limited (HKG:1989) Shares Recently?

Some Pine Care Group Limited (HKG:1989) shareholders may be a little concerned to see that the Executive Chairman, Yiu Sing Tang, recently sold a substantial HK$8.1m worth of stock at a price of HK$1.45 per share. However, that sale only accounted for 1.9% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Pine Care Group

Pine Care Group Insider Transactions Over The Last Year

Notably, that recent sale by Executive Chairman Yiu Sing Tang was not the only time they traded Pine Care Group shares this year. They previously purchased HK$449m worth of shares at a price of HK$1.65 per share. That means that even when the share price was higher than HK$1.42 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Yiu Sing Tang was also the biggest seller.

In the last twelve months insiders purchased 828.98m shares for HK$1.4b. On the other hand they divested 141.54m shares, for HK$230m. In the last twelve months there was more buying than selling by Pine Care Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Pine Care Group

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. Pine Care Group insiders own about HK$856m worth of shares (which is 67% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Pine Care Group Insiders?

Unfortunately, there has been more insider selling of Pine Care Group stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So the recent selling doesn't worry us. 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 that end, you should learn about the 3 warning signs we've spotted with Pine Care Group (including 2 which don't sit too well with us).

But note: Pine Care Group 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, 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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