This Insider Has Just Sold Shares In Tian Ge Interactive Holdings

We'd be surprised if Tian Ge Interactive Holdings Limited (HKG:1980) shareholders haven't noticed that the Non-Executive Director, Xiangdong Xiong, recently sold HK$990k worth of stock at HK$0.50 per share. On the bright side, that sale was only 3.4% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Tian Ge Interactive Holdings

Tian Ge Interactive Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Xiangdong Xiong is the biggest insider sale of Tian Ge Interactive Holdings shares that we've seen in the last year. That means that even when the share price was slightly below the current price of HK$0.50, 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. 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. This single sale was just 3.4% of Xiangdong Xiong's stake.

Xiangdong Xiong sold a total of 3.24m shares over the year at an average price of CN¥0.48. 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!

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Does Tian Ge Interactive Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Tian Ge Interactive Holdings insiders own about HK$196m worth of shares. That equates to 34% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Tian Ge Interactive Holdings Insiders?

An insider hasn't bought Tian Ge Interactive Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Every company has risks, and we've spotted 4 warning signs for Tian Ge Interactive Holdings (of which 2 are concerning!) you should know about.

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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.