Trade Alert: The Non-Executive Vice Chairman Of IMAX China Holding, Inc. (HKG:1970), Jiande Chen, Has Sold Some Shares Recently

Anyone interested in IMAX China Holding, Inc. (HKG:1970) should probably be aware that the Non-Executive Vice Chairman, Jiande Chen, recently divested HK$1.4m worth of shares in the company, at an average price of HK$15.79 each. In particular, we note that the sale equated to a 55% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for IMAX China Holding

IMAX China Holding Insider Transactions Over The Last Year

In fact, the recent sale by Jiande Chen was the biggest sale of IMAX China Holding shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (HK$16.22). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 55% of Jiande Chen'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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests IMAX China Holding insiders own 0.3% of the company, worth about HK$18m. I generally like to see higher levels of ownership.

So What Do The IMAX China Holding Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of IMAX China Holding.

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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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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