Don't Ignore The Fact That This Insider Just Sold Some Shares In Kinetix Systems Holdings Limited (HKG:8606)

We wouldn't blame Kinetix Systems Holdings Limited (HKG:8606) shareholders if they were a little worried about the fact that Pak Lun Yu, the Executive Chairman of the Board & CEO recently netted about HK$6.2m selling shares at an average price of HK$0.25. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.7%.

Check out our latest analysis for Kinetix Systems Holdings

Kinetix Systems Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Pak Lun Yu was the biggest sale of Kinetix Systems Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$0.28, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.7% of Pak Lun Yu's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Kinetix Systems Holdings Boast High 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. Kinetix Systems Holdings insiders own about HK$153m worth of shares (which is 75% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Kinetix Systems Holdings Tell Us?

An insider sold Kinetix Systems Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To that end, you should learn about the 5 warning signs we've spotted with Kinetix Systems Holdings (including 1 which makes us a bit uncomfortable).

Of course Kinetix Systems Holdings 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.

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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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