Insiders Relieved After Selling Qi-House Holdings With 11% Price Dip

Insiders seem to have made the most of their holdings by selling HK$1.9m worth of Qi-House Holdings Limited (HKG:8395) stock at an average sell price of HK$0.74 during the past year. The company’s market cap plunged by HK$174m after price dropped by 11% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Qi-House Holdings

The Last 12 Months Of Insider Transactions At Qi-House Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Qiang Xu, sold HK$1.0m worth of shares at a price of HK$0.69 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.89. 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. This single sale was just 1.3% of Qiang Xu's stake. Qiang Xu was the only individual insider to sell over the last year. Notably Qiang Xu was also the biggest buyer, having purchased HK$238k worth of shares.

Qiang Xu sold a total of 2.52m shares over the year at an average price of HK$0.74. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Qi-House Holdings Have Sold Stock Recently

We've seen more insider selling than insider buying at Qi-House Holdings recently. We note insider Qiang Xu cashed in HK$1.9m worth of shares. Meanwhile insider Qiang Xu bought HK$238k worth , as we said above . Generally this level of net selling might be considered a bit bearish.

Insider Ownership Of Qi-House Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Qi-House Holdings insiders own 71% of the company, currently worth about HK$996m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Qi-House Holdings Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Qi-House Holdings, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Qi-House Holdings. Be aware that Qi-House Holdings is showing 3 warning signs in our investment analysis, and 2 of those are significant...

But note: Qi-House 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 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.