Multiple Insiders Sold Pacific Basin Shipping Shares Presenting Weak Signs For Investors

A number of Pacific Basin Shipping Limited (HKG:2343) insiders sold their shares in the last year, which may have raised concerns among investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Pacific Basin Shipping

The Last 12 Months Of Insider Transactions At Pacific Basin Shipping

The insider, Peter Schulz, made the biggest insider sale in the last 12 months. That single transaction was for HK$3.2m worth of shares at a price of HK$3.16 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$2.38). So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Pacific Basin Shipping than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Pacific Basin Shipping insiders own 0.4% of the company, worth about HK$44m. We do generally prefer see higher levels of insider ownership.

So What Do The Pacific Basin Shipping Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Pacific Basin Shipping shares in the last quarter. Still, the insider transactions at Pacific Basin Shipping in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. 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. You'd be interested to know, that we found 2 warning signs for Pacific Basin Shipping and we suggest you have a look.

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.