Redco Properties Group's Insiders' Timely Sale May Have Helped Mitigate 13% Dip in Share Price

Insiders seem to have made the most of their holdings by selling CN¥8.4m worth of Redco Properties Group Limited (HKG:1622) stock at an average sell price of CN¥0.062 during the past year. The company's market worth decreased by HK$43m over the past week after the stock price dropped 13%, although insiders were able to minimize their losses

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Redco Properties Group Insider Transactions Over The Last Year

The insider, Leung Ho Ng, made the biggest insider sale in the last 12 months. That single transaction was for HK$8.4m worth of shares at a price of HK$0.062 each. That means that an insider was selling shares at slightly below the current price (HK$0.078). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 43% of Leung Ho Ng's stake. Leung Ho Ng was the only individual insider to sell shares in the last twelve months.

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!

Check out our latest analysis for Redco Properties Group

I will like Redco Properties Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Redco Properties Group Insiders Are Selling The Stock

The last three months saw significant insider selling at Redco Properties Group. In total, insider Leung Ho Ng sold HK$8.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Redco Properties Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Redco Properties Group insiders own 72% of the company, currently worth about HK$199m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Redco Properties Group Tell Us?

An insider sold Redco Properties Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. At Simply Wall St, we've found that Redco Properties Group has 6 warning signs (3 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Redco Properties Group 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 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.