The CFO, GM of Finance Center & Executive Director of SITC International Holdings Company Limited (HKG:1308), Kecheng Liu, Just Sold 55% Of Their Holding

Some SITC International Holdings Company Limited (HKG:1308) shareholders may be a little concerned to see that the CFO, GM of Finance Center & Executive Director, Kecheng Liu, recently sold a substantial HK$7.6m worth of stock at a price of HK$12.60 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 55% of their entire holding.

Check out our latest analysis for SITC International Holdings

The Last 12 Months Of Insider Transactions At SITC International Holdings

Notably, that recent sale by Kecheng Liu is the biggest insider sale of SITC International 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$13.60, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 55% of Kecheng Liu's holding.

Kecheng Liu ditched 1.11m shares over the year. The average price per share was US$12.85. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like SITC International Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. SITC International Holdings insiders own about HK$606m worth of shares. That equates to 1.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SITC International Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that SITC International Holdings is growing earnings. 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 SITC International Holdings. For example - SITC International Holdings has 4 warning signs we think you should be aware of.

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, but not derivative transactions.

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