Trade Alert: The Executive Director Of Great Eagle Holdings Limited (HKG:41), Shik Pui Chu, Has Sold Some Shares Recently

Some Great Eagle Holdings Limited (HKG:41) shareholders may be a little concerned to see that the Executive Director, Shik Pui Chu, recently sold a substantial HK$5.1m worth of stock at a price of HK$26.91 per share. That diminished their holding by a very significant 67%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Great Eagle Holdings

Great Eagle Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & MD Ka Shui Lo bought HK$78m worth of shares at a price of HK$19.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$26.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 9.93m shares for HK$197m. On the other hand they divested 191.00k shares, for HK$5.1m. In the last twelve months there was more buying than selling by Great Eagle Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Great Eagle Holdings insiders own 27% of the company, worth about HK$5.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Great Eagle Holdings Tell Us?

An insider sold Great Eagle Holdings shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. 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. At Simply Wall St, we've found that Great Eagle Holdings has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: Great Eagle Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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