Have Insiders Sold Huanxi Media Group Shares Recently?

We wouldn't blame Huanxi Media Group Limited (HKG:1003) shareholders if they were a little worried about the fact that Ping Dong, the Executive Chairman recently netted about HK$9.6m selling shares at an average price of HK$0.45. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.7%.

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The Last 12 Months Of Insider Transactions At Huanxi Media Group

Notably, that recent sale by Ping Dong is the biggest insider sale of Huanxi Media Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.48). 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. 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 only 3.7% of Ping Dong's holding.

Ping Dong sold a total of 48.33m shares over the year at an average price of HK$0.43. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Huanxi Media Group

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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. Huanxi Media Group insiders own about HK$712m worth of shares (which is 40% 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 Huanxi Media Group Tell Us?

The insider sales have outweighed the insider buying, at Huanxi Media Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Huanxi Media Group (1 is concerning) you should be aware of.

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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.