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Insiders who sold HK$267m worth of Apollo Future Mobility Group Limited (HKG:860) stock last year were handsomely rewarded

Simply Wall St ·  06/24 09:19

Even though Apollo Future Mobility Group Limited (HKG:860) stock gained 16% last week, insiders who sold HK$267m worth of stock over the past year are probably better off. Selling at an average price of HK$0.68, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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.

Check out our latest analysis for Apollo Future Mobility Group

Apollo Future Mobility Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Hoi Shuen Chau, for HK$133m worth of shares, at about HK$0.68 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.37). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Hoi Shuen Chau.

Over the last year, we can see that insiders have bought 14.00m shares worth HK$5.3m. But insiders sold 392.35m shares worth HK$267m. Hoi Shuen Chau divested 392.35m shares over the last 12 months at an average price of HK$0.68. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:860 Insider Trading Volume June 23rd 2022

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

Insiders at Apollo Future Mobility Group Have Bought Stock Recently

Over the last quarter, Apollo Future Mobility Group insiders have spent a meaningful amount on shares. In total, insiders bought HK$1.3m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Apollo Future Mobility Group insiders own about HK$941m worth of shares (which is 32% of the company). 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 Apollo Future Mobility Group Tell Us?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders , along with high insider ownership, suggest that Apollo Future Mobility Group insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Apollo Future Mobility Group has 1 warning sign and it would be unwise to ignore this.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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