share_log

Don't Ignore The Fact That This Insider Just Sold Some Shares In China Financial International Investments Limited (HKG:721)

Simply Wall St ·  Sep 11, 2022 20:25

We note that the China Financial International Investments Limited (HKG:721) Chairman & CEO, Lin Dong Du, recently sold HK$143k worth of stock for HK$0.05 per share. However we note that the sale only shrunk their holding by 0.4%.

Check out our latest analysis for China Financial International Investments

China Financial International Investments Insider Transactions Over The Last Year

In fact, the recent sale by Chairman & CEO Lin Dong Du was not their only sale of China Financial International Investments shares this year. Earlier in the year, they fetched HK$0.05 per share in a -HK$321k sale. That means that an insider was selling shares at around the current price of HK$0.05. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Lin Dong Du divested 9.27m shares over the last 12 months at an average price of HK$0.05. 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!

insider-trading-volumeSEHK:721 Insider Trading Volume September 12th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does China Financial International Investments Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that China Financial International Investments insiders own 35% of the company, worth about HK$191m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At China Financial International Investments Tell Us?

An insider hasn't bought China Financial International Investments stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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 Financial International Investments. Every company has risks, and we've spotted 4 warning signs for China Financial International Investments (of which 2 shouldn't be ignored!) 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.

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
    Write a comment