Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In IMAX China Holding, Inc. (HKG:1970)

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We note that the IMAX China Holding, Inc. (HKG:1970) Chief Marketing Officer, Mei-Hui Chou, recently sold HK$728k worth of stock for HK$8.74 per share. It wasn't a huge sale, but it did reduce their holding by 19%. This does not instill confidence.

Check out our latest analysis for IMAX China Holding

The Last 12 Months Of Insider Transactions At IMAX China Holding

In the last twelve months, the biggest single sale by an insider was when the Executive Vice Chairman, Jiande Chen, sold HK$1.3m worth of shares at a price of HK$8.78 per share. So we know that an insider sold shares at around the present share price of HK$8.12. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year IMAX China Holding insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:1970 Insider Trading Volume March 16th 2023

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

Does IMAX China Holding Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, IMAX China Holding insiders have about 0.7% of the stock, worth approximately HK$18m. We consider this fairly low insider ownership.

What Might The Insider Transactions At IMAX China Holding Tell Us?

Insiders sold IMAX China Holding shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. Case in point: We've spotted 2 warning signs for IMAX China Holding you should be aware of.

But note: IMAX China Holding 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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