Hoi Lo Is The CFO & Company Secretary of Rykadan Capital Limited (HKG:2288) And They Just Sold 79% Of Their Shares

Investors may wish to note that the CFO & Company Secretary of Rykadan Capital Limited, Hoi Lo, recently netted HK$162k from selling stock, receiving an average price of HK$0.68. While that isn't a lot of money, it was a substantial 79% of their holding, so certainly isn't a good sign.

See our latest analysis for Rykadan Capital

The Last 12 Months Of Insider Transactions At Rykadan Capital

The Chairman & CEO William Chan made the biggest insider purchase in the last 12 months. That single transaction was for HK$6.2m worth of shares at a price of HK$0.65 each. That means that even when the share price was higher than HK$0.62 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was William Chan.

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!

Rykadan Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Rykadan Capital insiders own about HK$120m worth of shares (which is 52% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Rykadan Capital Insiders?

An insider sold Rykadan Capital shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rykadan Capital. While conducting our analysis, we found that Rykadan Capital has 3 warning signs and it would be unwise to ignore them.

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, 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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