This Insider Has Just Sold Shares In hmvod Limited (HKG:8103)

By
Simply Wall St
Published
January 14, 2022
SEHK:8103
Source: Shutterstock

Some hmvod Limited (HKG:8103) shareholders may be a little concerned to see that insider Lisa Leung recently sold a substantial HK$29m worth of stock at a price of HK$1.50 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 74% of their entire holding.

View our latest analysis for hmvod

The Last 12 Months Of Insider Transactions At hmvod

Over the last year, we can see that the biggest insider sale was by the insider, Wang Chi Lau, for HK$31m worth of shares, at about HK$2.83 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$1.75. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 22.12m shares for HK$50m. On the other hand they divested 30.61m shares, for HK$61m. Over the last year we saw more insider selling of hmvod shares, than buying. The sellers received a price of around HK$1.98, on average. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of HK$1.75. 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!

insider-trading-volume
SEHK:8103 Insider Trading Volume January 14th 2022

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 hmvod

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of hmvod shares, worth about HK$69m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The hmvod Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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 7 warning signs for hmvod you should be aware of, and 2 of them are a bit concerning.

Of course hmvod may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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