Have Pico Far East Holdings Limited (HKG:752) Insiders Been Selling Their Stock?

We'd be surprised if Pico Far East Holdings Limited (HKG:752) shareholders haven't noticed that an insider, David Webb, recently sold HK$835k worth of stock at HK$1.44 per share. On the bright side, that sale was only 0.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Pico Far East Holdings

The Last 12 Months Of Insider Transactions At Pico Far East Holdings

In fact, the recent sale by David Webb was the biggest sale of Pico Far East Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$1.40. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Pico Far East Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Pico Far East Holdings insiders own 5.2% of the company, worth about HK$90m. 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 Do The Pico Far East Holdings Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Pico Far East Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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. In terms of investment risks, we've identified 4 warning signs with Pico Far East Holdings and understanding these should be part of your investment process.

But note: Pico Far East Holdings 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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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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