We wouldn't blame SingAsia Holdings Limited (HKG:8293) shareholders if they were a little worried about the fact that Weiyan Huang, a company insider, recently netted about HK$4.2m selling shares at an average price of HK$0.033. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
Check out our latest analysis for SingAsia Holdings
The Last 12 Months Of Insider Transactions At SingAsia Holdings
In fact, the recent sale by insider Weiyan Huang was not their only trade of SingAsia Holdings shares this year. They previously purchased HK$20m worth of shares at a price of HK$0.067 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.027). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Weiyan Huang was also the biggest seller.
Happily, we note that in the last year insiders paid HK$24m for 401.00m shares. On the other hand they divested 392.11m shares, for HK$15m. Overall, SingAsia Holdings insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!SEHK:8293 Insider Trading Volume October 3rd 2022
SingAsia Holdings is not the only stock that insiders are buying. 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 SingAsia Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that SingAsia Holdings insiders own 15% of the company, worth about HK$7.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About SingAsia Holdings Insiders?
The stark truth for SingAsia Holdings is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. Still, insiders don't own a great deal of the stock. So the company doesn't look great on this analysis. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 5 warning signs for SingAsia Holdings (of which 3 can't be ignored!) you should know about.
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.
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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.