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With Kingdee International Software Group Company Limited's (HKG:268)) price down 8.8% this week, insiders might find some solace having sold CN¥15m worth of shares earlier this year.

Simply Wall St ·  Aug 3, 2022 19:20

Insiders at Kingdee International Software Group Company Limited (HKG:268) sold CN¥15m worth of stock at an average price of CN¥25.70 a share over the past year, making the most of their investment. The company's market valuation decreased by HK$5.4b after the stock price dropped 8.8% over the past week, but insiders were spared from painful losses.

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 Kingdee International Software Group

Kingdee International Software Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CFO, Senior VP & Executive Director, Bo Lin, sold HK$10m worth of shares at a price of HK$25.80 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$16.16). So it may not shed much light on insider confidence at current levels. Bo Lin was the only individual insider to sell shares in the last twelve months.

Bo Lin sold a total of 600.00k shares over the year at an average price of CN¥25.70. 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!

insider-trading-volumeSEHK:268 Insider Trading Volume August 3rd 2022

I will like Kingdee International Software Group 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 Kingdee International Software Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Kingdee International Software Group insiders own 20% of the company, currently worth about HK$11b based on the recent share price. 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 Kingdee International Software Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Kingdee International Software Group shares in the last quarter. While we feel good about high insider ownership of Kingdee International Software Group, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Kingdee International Software Group, you should check out this free report on analyst forecasts for the company.

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.

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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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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