Landsea Green Management Insiders Selling CN¥11m In Stock Relieved As Market Cap Slides To HK$99m

By selling CN¥11m worth of Landsea Green Management Limited (HKG:106) stock at an average sell price of CN¥0.01 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by HK$14m after price dropped by 13% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Landsea Green Management Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Huaijun Chen, for HK$9.4m worth of shares, at about HK$0.01 per share. That means that even when the share price was below the current price of HK$0.021, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Huaijun Chen's holding.

Landsea Green Management insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Landsea Green Management

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Insider Ownership Of Landsea Green Management

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. Our data indicates that Landsea Green Management insiders own about HK$13m worth of shares (which is 14% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Landsea Green Management Tell Us?

It doesn't really mean much that no insider has traded Landsea Green Management shares in the last quarter. Our analysis of Landsea Green Management insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Landsea Green Management (of which 3 don't sit too well with us!) 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.