We'd be surprised if Karrie International Holdings Limited (HKG:1050) shareholders haven't noticed that the Executive GM of Marketing & Executive Director, Shui Sum Chan, recently sold HK$1.3m worth of stock at HK$1.72 per share. That sale was 16% of their holding, so it does make us raise an eyebrow.
Karrie International Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Shui Sum Chan was the biggest sale of Karrie International Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$1.57. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
All up, insiders sold more shares in Karrie International Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Karrie International 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.
Does Karrie International Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Karrie International Holdings insiders own 21% of the company, worth about HK$663m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Karrie International Holdings Insiders?
An insider hasn't bought Karrie International Holdings stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Karrie International Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Karrie International Holdings has 3 warning signs and it would be unwise to ignore these.
But note: Karrie International 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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