Need To Know: Milan Station Holdings Limited (HKG:1150) Insiders Have Been Selling Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Milan Station Holdings Limited (HKG:1150), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Milan Station Holdings

The Last 12 Months Of Insider Transactions At Milan Station Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Kwan Yiu, sold HK$1.6m worth of shares at a price of HK$0.16 per share. That means that an insider was selling shares at slightly below the current price (HK$0.22). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 50% of Kwan Yiu's holding. Kwan Yiu was the only individual insider to sell shares in the last twelve months.

Kwan Yiu ditched 11.99m shares over the year. The average price per share was HK$0.18. 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!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Milan Station Holdings insiders own 1.8% of the company, worth about HK$2.7m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Milan Station Holdings Tell Us?

The fact that there have been no Milan Station Holdings insider transactions recently certainly doesn't bother us. The insider transactions at Milan Station Holdings are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. To help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Milan Station Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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