The CEO, Head of Finance of S E A Holdings Limited (HKG:251), Lambert Lu, Just Sold 45% Of Their Holding

Anyone interested in S E A Holdings Limited (HKG:251) should probably be aware that the CEO, Head of Finance, Lambert Lu, recently divested HK$3.2m worth of shares in the company, at an average price of HK$7.11 each. That sale was 45% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for S E A Holdings

S E A Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Lambert Lu is the biggest insider sale of S E A Holdings 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$7.28. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 45% of Lambert Lu's holding.

Lambert Lu ditched 454.00k shares over the year. The average price per share was HK$7.13. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of S E A Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. S E A Holdings insiders own 22% of the company, currently worth about HK$1.0b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The S E A Holdings Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at S E A Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that S E A Holdings is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, S E A Holdings has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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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