Trade Alert: The Independent Non-Executive Director Of Shunten International (Holdings) Limited (HKG:932), Kin Yip Tam, Has Sold Some Shares Recently

Investors may wish to note that the Independent Non-Executive Director of Shunten International (Holdings) Limited, Kin Yip Tam, recently netted HK$73k from selling stock, receiving an average price of HK$0.15. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

View our latest analysis for Shunten International (Holdings)

Shunten International (Holdings) Insider Transactions Over The Last Year

In fact, the recent sale by Kin Yip Tam was the biggest sale of Shunten International (Holdings) shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of HK$0.15. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 100% of Kin Yip Tam's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Shunten 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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 33% of Shunten International (Holdings) shares, worth about HK$128m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Shunten International (Holdings) Tell Us?

An insider hasn't bought Shunten International (Holdings) stock in the last three months, but there was some selling. 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 4 warning signs for Shunten International (Holdings) (of which 1 shouldn't be ignored!) you should know about.

But note: Shunten 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, but not derivative transactions.

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