Kinergy Falls To HK$0.12, But Insiders Sold At Lower Price

Kinergy Corporation Ltd.'s (HKG:3302) value has fallen 12% in the last week, but insiders who sold S$2.7m worth of stock over the last year have had less success. The average selling price of S$0.15 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Kinergy Insider Transactions Over The Last Year

The insider, Bradley Fraser Kerr, made the biggest insider sale in the last 12 months. That single transaction was for HK$2.7m worth of shares at a price of HK$0.15 each. 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 is hard to draw any strong conclusion from it. Bradley Fraser Kerr was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Kinergy

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kinergy insiders own 41% of the company, currently worth about HK$46m based on the recent share price. 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 Kinergy Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Kinergy shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Kinergy insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kinergy. Our analysis shows 3 warning signs for Kinergy (2 are potentially serious!) and we strongly recommend you look at these before investing.

But note: Kinergy 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 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.