We'd be surprised if Pacific Basin Shipping Limited (HKG:2343) shareholders haven't noticed that the Chairman, David Turnbull, recently sold HK$2.6m worth of stock at HK$3.72 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Pacific Basin Shipping

The Last 12 Months Of Insider Transactions At Pacific Basin Shipping

Notably, that recent sale by Chairman David Turnbull was not the only time they sold Pacific Basin Shipping shares this year. Earlier in the year, they fetched HK$4.29 per share in a -HK$13m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$3.46. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid HK$6.2m for 1.70m shares. But insiders sold 9.20m shares worth HK$36m. David Turnbull sold a total of 9.20m shares over the year at an average price of US$3.93. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Pacific Basin Shipping better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Pacific Basin Shipping

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Pacific Basin Shipping insiders own 0.4% of the company, worth about HK$68m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Pacific Basin Shipping Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Pacific Basin Shipping stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Pacific Basin Shipping is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for Pacific Basin Shipping (of which 1 doesn't sit too well with us!) you should know about.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.