Mats Henrik Berglund Is The CEO & Executive Director of Pacific Basin Shipping Limited (HKG:2343) And They Just Sold 54% Of Their Shares

We wouldn't blame Pacific Basin Shipping Limited (HKG:2343) shareholders if they were a little worried about the fact that Mats Henrik Berglund, the CEO & Executive Director recently netted about HK$14m selling shares at an average price of HK$2.05. Probably the most concerning element of the whole transaction is that the disposal amounted to 54% of their entire holding.

See our latest analysis for Pacific Basin Shipping

The Last 12 Months Of Insider Transactions At Pacific Basin Shipping

In fact, the recent sale by Mats Henrik Berglund was the biggest sale of Pacific Basin Shipping shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$2.18, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 54% of Mats Henrik Berglund's stake.

Mats Henrik Berglund sold a total of 11.33m shares over the year at an average price of US$2.04. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Pacific Basin Shipping Boast High 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. Insiders own 0.7% of Pacific Basin Shipping shares, worth about HK$71m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Pacific Basin Shipping Insiders?

An insider sold Pacific Basin Shipping shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pacific Basin Shipping. You'd be interested to know, that we found 2 warning signs for Pacific Basin Shipping and we suggest you have a look.

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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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