Have Insiders Sold Orange Tour Cultural Holding Limited (HKG:8627) Shares Recently?

We wouldn't blame Orange Tour Cultural Holding Limited (HKG:8627) shareholders if they were a little worried about the fact that Shing Hei Ho, a company insider, recently netted about HK$5.4m selling shares at an average price of HK$0.22. That sale reduced their total holding by 40% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Orange Tour Cultural Holding

The Last 12 Months Of Insider Transactions At Orange Tour Cultural Holding

Notably, that recent sale by Shing Hei Ho is the biggest insider sale of Orange Tour Cultural Holding shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.25. 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. It is worth noting that this sale was only 40% of Shing Hei Ho'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 of Orange Tour Cultural Holding

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. Orange Tour Cultural Holding insiders own about HK$46m worth of shares. That equates to 23% 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 Do The Orange Tour Cultural 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. At Simply Wall St, we've found that Orange Tour Cultural Holding has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

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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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