This Hongkong Land Holdings Insider Reduced Their Stake By 100%

From what we can see, insiders were net sellers in Hongkong Land Holdings Limited's (SGX:H78 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Our free stock report includes 2 warning signs investors should be aware of before investing in Hongkong Land Holdings. Read for free now.

Hongkong Land Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Yau Chung Wong is the biggest insider sale of Hongkong Land Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.91. 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. 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 100% of Yau Chung Wong's stake.

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!

See our latest analysis for Hongkong Land Holdings

I will like Hongkong Land Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Hongkong Land Holdings Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Hongkong Land Holdings shares over the last three months. In that time, insider Yau Chung Wong dumped US$2.9m worth of shares. On the other hand we note CFO & Executive Director Craig Alan Beattie bought US$86k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership Of Hongkong Land Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Hongkong Land Holdings insiders own 0.06% of the company, worth about US$6.4m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Hongkong Land Holdings Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Hongkong Land Holdings stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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 Hongkong Land Holdings 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.