China International Holdings Drops To S$0.053, Yet Insiders May Have Sold Too Early

Even though China International Holdings Limited (SGX:BEH) has fallen by 17% over the past week , insiders who sold CN¥357k worth of stock over the past year have had less luck. Given that the average selling price of CN¥0.075 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for China International Holdings

The Last 12 Months Of Insider Transactions At China International Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Tatkwong Lee, sold S$357k worth of shares at a price of S$0.075 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (S$0.053). So it is hard to draw any strong conclusion from it. Tatkwong Lee was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

China International Holdings Insiders Are Selling The Stock

The last quarter saw substantial insider selling of China International Holdings shares. Specifically, insider Tatkwong Lee ditched S$357k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of China International Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China International Holdings insiders own about S$1.9m worth of shares (which is 45% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The China International Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 China International Holdings. At Simply Wall St, we've found that China International Holdings has 5 warning signs (4 are a bit concerning!) that deserve your attention before going any further with your analysis.

Of course China International Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.