Tailam Tech Construction Holdings Drops To HK$0.26, Yet Insiders May Have Sold Too Early \

Despite the fact that Tailam Tech Construction Holdings Limited's (HKG:6193) value has dropped 12% in the last week insiders who sold CN¥3.7m worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of CN¥0.34 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Tailam Tech Construction Holdings

Tailam Tech Construction Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Han Yu Wong, for HK$3.1m worth of shares, at about HK$0.34 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.26. So it may not shed much light on insider confidence at current levels. Han Yu Wong was the only individual insider to sell over the last year.

Han Yu Wong divested 10.86m shares over the last 12 months at an average price of CN¥0.34. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Tailam Tech Construction 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Tailam Tech Construction Holdings insiders own about HK$69m worth of shares (which is 66% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Tailam Tech Construction Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Tailam Tech Construction Holdings insiders 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. Case in point: We've spotted 2 warning signs for Tailam Tech Construction Holdings you should be aware of, and 1 of these is concerning.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.