Did Pentamaster International Limited (HKG:1665) Insiders Sell Shares?

By
Simply Wall St
Published
May 31, 2021
SEHK:1665
Source: Shutterstock

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Pentamaster International Limited (HKG:1665).

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.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Pentamaster International

The Last 12 Months Of Insider Transactions At Pentamaster International

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Kean Yong Leng, sold HK$1.2m worth of shares at a price of HK$1.91 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$1.63. So it is hard to draw any strong conclusion from it. Kean Yong Leng was the only individual insider to sell over the last year.

Kean Yong Leng sold a total of 2.09m shares over the year at an average price of RM1.84. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:1665 Insider Trading Volume May 31st 2021

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

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. Based on our data, Pentamaster International insiders have about 1.4% of the stock, worth approximately HK$37m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Pentamaster International Tell Us?

The fact that there have been no Pentamaster International insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Pentamaster International insiders. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Pentamaster International you should be aware of.

Of course Pentamaster International may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.