Stock Analysis

AsiaInfo Technologies Sees Insider Stock Selling

Published
SEHK:1675

Viewing insider transactions for AsiaInfo Technologies Limited's (HKG:1675 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for AsiaInfo Technologies

AsiaInfo Technologies Insider Transactions Over The Last Year

The insider, Tzu Lien Liu, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.4m worth of shares at a price of HK$14.56 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$7.22). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Tzu Lien Liu.

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!

SEHK:1675 Insider Trading Volume March 5th 2024

I will like AsiaInfo Technologies 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 Of AsiaInfo Technologies

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that AsiaInfo Technologies insiders own 21% of the company, worth about HK$1.4b. 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 AsiaInfo Technologies Insider Transactions Indicate?

It doesn't really mean much that no insider has traded AsiaInfo Technologies shares in the last quarter. While we feel good about high insider ownership of AsiaInfo Technologies, we can't say the same about the selling of shares. 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. While conducting our analysis, we found that AsiaInfo Technologies has 1 warning sign and it would be unwise to ignore this.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.