This Insider Has Just Sold Shares In Fu Yu Corporation Limited (SGX:F13)

We wouldn't blame Fu Yu Corporation Limited (SGX:F13) shareholders if they were a little worried about the fact that Heng Yang Ching, a company insider, recently netted about S$19m selling shares at an average price of S$0.26. That diminished their holding by a very significant 83%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Fu Yu

Fu Yu Insider Transactions Over The Last Year

Notably, that recent sale by Heng Yang Ching is the biggest insider sale of Fu Yu shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (S$0.29). 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. 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. This single sale was 83% of Heng Yang Ching's stake.

In the last year Fu Yu insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Fu Yu Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Fu Yu insiders own 41% of the company, currently worth about S$88m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Fu Yu Tell Us?

Insiders haven't bought Fu Yu stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Fu Yu makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fu Yu. For example - Fu Yu has 2 warning signs we think you should be aware of.

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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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