Chairman & CEO Sanhuo Zhang Sold A Bunch Of Shares In PINE Technology Holdings

We wouldn't blame PINE Technology Holdings Limited (HKG:1079) shareholders if they were a little worried about the fact that Sanhuo Zhang, the Chairman & CEO recently netted about HK$31m selling shares at an average price of HK$0.068. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At PINE Technology Holdings

Notably, that recent sale by Sanhuo Zhang is the biggest insider sale of PINE Technology Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.14). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 100% of Sanhuo Zhang's holding.

In the last year PINE Technology Holdings insiders didn't buy any company stock. 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!

Check out our latest analysis for PINE Technology Holdings

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Does PINE Technology 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. PINE Technology Holdings insiders own about HK$98m worth of shares (which is 54% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At PINE Technology Holdings Tell Us?

Insiders sold PINE Technology 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. While it's good to be aware of 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. To that end, you should learn about the 3 warning signs we've spotted with PINE Technology Holdings (including 1 which doesn't sit too well with us).

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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.