Selling HK$40m Of Almana Stock Rewarded Insiders

Despite a 21% gain in Almana Limited's (HKG:8186) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell HK$40m worth of stock in the last year, which could indicate some expected downturn.

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.

View our latest analysis for Almana

The Last 12 Months Of Insider Transactions At Almana

The insider, Wei Bo Feng, made the biggest insider sale in the last 12 months. That single transaction was for HK$36m worth of shares at a price of HK$1.05 each. That means that even when the share price was below the current price of HK$1.49, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 100% of Wei Bo Feng's holding.

Insiders in Almana didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Almana Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Almana insiders own about HK$58m worth of shares (which is 41% 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 Do The Almana Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Almana shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Almana insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Almana. For instance, we've identified 5 warning signs for Almana (3 are concerning) you should be aware of.

But note: Almana 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.