Don't Ignore The Insider Selling In Hang Chi Holdings

Investors may wish to note that the Executive Chairman of the Board of Hang Chi Holdings Limited, Tak Chi Yik, recently netted HK$521k from selling stock, receiving an average price of HK$0.65. On the bright side, that's just a small sale and only reduced their holding by 0.3%.

Check out our latest analysis for Hang Chi Holdings

The Last 12 Months Of Insider Transactions At Hang Chi Holdings

The insider Ko Yeung Lok made the biggest insider purchase in the last 12 months. That single transaction was for HK$21m worth of shares at a price of HK$0.65 each. So it's clear an insider wanted to buy, at around the current price, which is HK$0.65. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Hang Chi Holdings insider decided to buy shares at close to current prices. Ko Yeung Lok was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Hang Chi Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Hang Chi Holdings insiders own about HK$212m worth of shares (which is 81% 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.

What Might The Insider Transactions At Hang Chi Holdings Tell Us?

An insider sold Hang Chi Holdings shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Hang Chi Holdings you should know about.

But note: Hang Chi 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com