This Flowing Cloud Technology Insider Reduced Their Stake By 10%

Insiders were net sellers of Flowing Cloud Technology Ltd's (HKG:6610 ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Flowing Cloud Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Senior VP & CTO, Yanhao Li, sold HK$2.7m worth of shares at a price of HK$0.29 per share. That means that even when the share price was slightly below the current price of HK$0.29, an insider wanted to cash in some shares. 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. 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 10% of Yanhao Li's holding. Yanhao Li was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Flowing Cloud Technology

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Does Flowing Cloud Technology Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own HK$24m worth of Flowing Cloud Technology stock, about 3.9% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The Flowing Cloud Technology Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Flowing Cloud Technology shares in the last quarter. We don't take much encouragement from the transactions by Flowing Cloud Technology insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Flowing Cloud Technology. While conducting our analysis, we found that Flowing Cloud Technology has 3 warning signs and it would be unwise to ignore these.

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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.