Stock Analysis

Have Hang Tai Yue Group Holdings Limited (HKG:8081) Insiders Been Selling Their Stock?

SEHK:8081
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Some Hang Tai Yue Group Holdings Limited (HKG:8081) shareholders may be a little concerned to see that insider Hei Yu Cheng recently sold a substantial HK$4.8m worth of stock at a price of HK$0.069 per share. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Hang Tai Yue Group Holdings

Hang Tai Yue Group Holdings Insider Transactions Over The Last Year

In fact, the recent sale by insider Hei Yu Cheng was not their only sale of Hang Tai Yue Group Holdings shares this year. Earlier in the year, they fetched HK$0.074 per share in a -HK$11m sale. So we know that an insider sold shares at around the present share price of HK$0.07. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Hei Yu Cheng sold a total of 1.14b shares over the year at an average price of HK$0.073. 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!

insider-trading-volume
SEHK:8081 Insider Trading Volume November 30th 2020

I will like Hang Tai Yue Group 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.

Insider Ownership of Hang Tai Yue Group 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. We usually like to see fairly high levels of insider ownership. Hang Tai Yue Group Holdings insiders own 49% of the company, currently worth about HK$184m 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 Does This Data Suggest About Hang Tai Yue Group Holdings Insiders?

An insider hasn't bought Hang Tai Yue Group Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Hang Tai Yue Group Holdings you should be aware of.

But note: Hang Tai Yue Group 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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