Have Pangaea Connectivity Technology Insiders Been Selling Stock?

We wouldn't blame Pangaea Connectivity Technology Limited (HKG:1473) shareholders if they were a little worried about the fact that Yui Kong Fung, the Executive Chairman & CEO recently netted about HK$25m selling shares at an average price of HK$0.25. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

View our latest analysis for Pangaea Connectivity Technology

Pangaea Connectivity Technology Insider Transactions Over The Last Year

In fact, the recent sale by Yui Kong Fung was the biggest sale of Pangaea Connectivity Technology shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.12. So it may not shed much light on insider confidence at current levels.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Pangaea Connectivity Technology

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pangaea Connectivity Technology insiders own 75% of the company, currently worth about HK$86m 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.

What Might The Insider Transactions At Pangaea Connectivity Technology Tell Us?

An insider sold Pangaea Connectivity Technology shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Pangaea Connectivity Technology.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.