We wouldn't blame Sheung Moon Holdings Limited (HKG:8523) shareholders if they were a little worried about the fact that Sze Wo Tang, the Chairman & Compliance Officer recently netted about HK$12m selling shares at an average price of HK$0.39. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for Sheung Moon Holdings
The Last 12 Months Of Insider Transactions At Sheung Moon Holdings
Notably, that recent sale by Sze Wo Tang is the biggest insider sale of Sheung Moon Holdings shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.35. So it may not shed much light on insider confidence at current levels.
Sze Wo Tang ditched 40.00m shares over the year. The average price per share was HK$0.39. 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!
I will like Sheung Moon Holdings 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 Sheung Moon Holdings
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sheung Moon Holdings insiders own 73% of the company, currently worth about HK$103m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Sheung Moon Holdings Tell Us?
An insider sold Sheung Moon Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Sheung Moon Holdings has 5 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.