This Shoucheng Holdings Insider Reduced Their Stake By 50%

From what we can see, insiders were net sellers in Shoucheng Holdings Limited's (HKG:697 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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

View our latest analysis for Shoucheng Holdings

The Last 12 Months Of Insider Transactions At Shoucheng Holdings

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board, Tianyang Zhao, for HK$2.6m worth of shares, at about HK$1.86 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$1.32. So it may not shed much light on insider confidence at current levels. Tianyang Zhao was the only individual insider to sell over the last year.

Tianyang Zhao ditched 2.70m shares over the year. The average price per share was HK$1.84. 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!

I will like Shoucheng Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Shoucheng Holdings Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Shoucheng Holdings. Non-Executive Director Jingwei Liu purchased HK$390k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Shoucheng Holdings insiders own 0.09% of the company, worth about HK$8.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Shoucheng Holdings Tell Us?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. 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. Our analysis shows 2 warning signs for Shoucheng Holdings (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.