This HKT Trust and HKT Insider Reduced Their Stake By 15%

Viewing insider transactions for HKT Trust and HKT Limited's (HKG:6823 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

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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The Last 12 Months Of Insider Transactions At HKT Trust and HKT

The Group MD & Executive Director of HKT Management Limited, Hon-Hing Hui, made the biggest insider sale in the last 12 months. That single transaction was for HK$7.3m worth of shares at a price of HK$10.91 each. That means that even when the share price was below the current price of HK$11.80, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 15% of Hon-Hing Hui's stake. The only individual insider seller over the last year was Hon-Hing Hui.

Hon-Hing Hui ditched 1.02m shares over the year. The average price per share was HK$11.13. 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!

See our latest analysis for HKT Trust and HKT

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Insiders At HKT Trust and HKT Have Sold Stock Recently

The last three months saw significant insider selling at HKT Trust and HKT. In total, Group MD & Executive Director of HKT Management Limited Hon-Hing Hui dumped HK$4.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that HKT Trust and HKT insiders own 0.7% of the company, worth about HK$614m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At HKT Trust and HKT Tell Us?

An insider hasn't bought HKT Trust and HKT 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. But since HKT Trust and HKT is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for HKT Trust and HKT you should know about.

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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 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.