This Insider Has Just Sold Shares In Hang Tai Yue Group Holdings Limited (HKG:8081)

By
Simply Wall St
Published
May 29, 2021
SEHK:8081
Source: Shutterstock

We'd be surprised if Hang Tai Yue Group Holdings Limited (HKG:8081) shareholders haven't noticed that an insider, Hei Yu Cheng, recently sold HK$2.3m worth of stock at HK$0.076 per share. On the bright side, that sale was only 1.3% of their holding, so we doubt it's very meaningful, on its own.

View 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. They previously made an even bigger sale of -HK$11m worth of shares at a price of HK$0.074 per share. That means that even when the share price was below the current price of HK$0.076, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 4.4%of Hei Yu Cheng's holding.

Hei Yu Cheng sold a total of 1.47b shares over the year at an average price of HK$0.072. The chart below shows insider transactions (by companies and individuals) over the last year. 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 May 30th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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 44% of the company, currently worth about HK$178m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Hang Tai Yue Group Holdings Insiders?

An insider sold stock recently, but they haven't been buying. 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. 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 Hang Tai Yue Group Holdings has 3 warning signs and it would be unwise to ignore these.

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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