HK Asia Holdings Executive Chairman of the Board Muk Lung Siu Sells 100% Of Holding

We wouldn't blame HK Asia Holdings Limited (HKG:1723) shareholders if they were a little worried about the fact that Muk Lung Siu, the Executive Chairman of the Board recently netted about HK$126m selling shares at an average price of HK$0.45. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

View our latest analysis for HK Asia Holdings

The Last 12 Months Of Insider Transactions At HK Asia Holdings

Notably, that recent sale by Muk Lung Siu is the biggest insider sale of HK Asia Holdings shares that we've seen in the last year. That means that even when the share price was below the current price of HK$0.47, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Muk Lung Siu's stake.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that HK Asia Holdings insiders own 75% of the company, worth about HK$143m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About HK Asia Holdings Insiders?

Unfortunately, there has been more insider selling of HK Asia Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HK Asia Holdings. For instance, we've identified 4 warning signs for HK Asia Holdings (1 doesn't sit too well with us) you should be aware of.

Of course HK Asia 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 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.