We wouldn't blame Royal Group Holdings International Company Limited (HKG:8300) shareholders if they were a little worried about the fact that Man Wai Wong, the Executive Chairman recently netted about HK$10m selling shares at an average price of HK$0.032. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.
Check out our latest analysis for Royal Group Holdings International
Royal Group Holdings International Insider Transactions Over The Last Year
In fact, the recent sale by Man Wai Wong was the biggest sale of Royal Group Holdings International shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$0.18, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. We note that the biggest single sale was only 17%of Man Wai Wong's holding.
Man Wai Wong divested 479.44m shares over the last 12 months at an average price of HK$0.032. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Of Royal Group Holdings International
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. Royal Group Holdings International insiders own about HK$377m worth of shares (which is 81% 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 Does This Data Suggest About Royal Group Holdings International Insiders?
The insider sales have outweighed the insider buying, at Royal Group Holdings International, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Royal Group Holdings International is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
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.
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.