This Insider Has Just Sold Shares In HK Asia Holdings Limited (HKG:1723)

We'd be surprised if HK Asia Holdings Limited (HKG:1723) shareholders haven't noticed that the Executive Chairman of the Board, Muk Lung Siu, recently sold HK$937k worth of stock at HK$3.04 per share. However, the silver lining is that the sale only reduced their total holding by 0.1%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for HK Asia Holdings

HK Asia Holdings Insider Transactions Over The Last Year

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$3.30, 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. 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. We note that the biggest single sale was only 0.1%of Muk Lung Siu's holding.

Muk Lung Siu ditched 498.00k shares over the year. The average price per share was HK$3.08. 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!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that HK Asia Holdings insiders own 71% of the company, worth about HK$1.0b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The HK Asia Holdings Insider Transactions Indicate?

An insider hasn't bought HK Asia Holdings stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HK Asia Holdings. At Simply Wall St, we found 1 warning sign for HK Asia Holdings that deserve your attention before buying any shares.

But note: HK Asia 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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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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