Trade Alert: COO, CFO & Executive Director Of FIT Hon Teng Pochin Lu Has Sold Stock

We wouldn't blame FIT Hon Teng Limited (HKG:6088) shareholders if they were a little worried about the fact that Pochin Lu, the COO, CFO & Executive Director recently netted about HK$57m selling shares at an average price of HK$3.17. That diminished their holding by a very significant 59%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for FIT Hon Teng

FIT Hon Teng Insider Transactions Over The Last Year

Notably, that recent sale by Pochin Lu is the biggest insider sale of FIT Hon Teng shares that we've seen in the last year. That means that even when the share price was below the current price of HK$3.52, 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. It is worth noting that this sale was 59% of Pochin Lu's holding.

In the last year FIT Hon Teng insiders didn't buy any company stock. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does FIT Hon Teng Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. FIT Hon Teng insiders own about HK$1.7b worth of shares (which is 6.7% of the company). 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 FIT Hon Teng Insiders?

Insiders sold FIT Hon Teng shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that FIT Hon Teng has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com