Trade Alert: The Independent Chairman of the Board Of AAC Technologies Holdings Inc. (HKG:2018), Hongjiang Zhang, Has Sold Some Shares Recently

We wouldn't blame AAC Technologies Holdings Inc. (HKG:2018) shareholders if they were a little worried about the fact that Hongjiang Zhang, the Independent Chairman of the Board recently netted about HK$4.5m selling shares at an average price of HK$45.17. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for AAC Technologies Holdings

The Last 12 Months Of Insider Transactions At AAC Technologies Holdings

Over the last year, we can see that the biggest insider sale was by the insider, Jinzhi Jiang, for HK$66m worth of shares, at about HK$43.87 per share. That means that an insider was selling shares at slightly below the current price (HK$44.80). 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. This single sale was just 4.1% of Jinzhi Jiang's stake.

Insiders in AAC Technologies Holdings didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that AAC Technologies Holdings insiders own 44% of the company, worth about HK$24b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The AAC Technologies Holdings Insider Transactions Indicate?

Insiders haven't bought AAC Technologies Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AAC Technologies Holdings. While conducting our analysis, we found that AAC Technologies Holdings has 3 warning signs and it would be unwise to ignore them.

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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, 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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