Have Tree Holdings Limited (HKG:8395) Insiders Been Selling Their Stock?

Investors may wish to note that the Chairman & CEO of Tree Holdings Limited, Tang Tong, recently netted HK$580k from selling stock, receiving an average price of HK$0.58. On the bright side, that's just a small sale and only reduced their holding by 0.09%.

View our latest analysis for Tree Holdings

The Last 12 Months Of Insider Transactions At Tree Holdings

Notably, that recent sale by Tang Tong is the biggest insider sale of Tree 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 slightly below the current price of HK$0.59. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 0.09%of Tang Tong's holding.

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!

I will like Tree Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Tree Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tree Holdings insiders own about HK$706m worth of shares (which is 74% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Tree Holdings Tell Us?

An insider sold Tree Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that Tree Holdings has 2 warning signs and it would be unwise to ignore these.

But note: Tree 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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