We'd be surprised if F8 Enterprises (Holdings) Group Limited (HKG:8347) shareholders haven't noticed that the Founder, Chun Man Fong, recently sold HK$966k worth of stock at HK$0.16 per share. However, the silver lining is that the sale only reduced their total holding by 7.9%, so we're hesitant to read anything much into it, on its own.
Check out our latest analysis for F8 Enterprises (Holdings) Group
The Last 12 Months Of Insider Transactions At F8 Enterprises (Holdings) Group
Notably, that recent sale by Founder Chun Man Fong was not the only time they traded F8 Enterprises (Holdings) Group shares this year. Earlier in the year, they spent HK$8.6m to buy shares at HK$0.34 per share. That means that even when the share price was higher than HK$0.30 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Chun Man Fong was the only individual insider to buy shares in the last twelve months. Notably Chun Man Fong was also the biggest seller.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. F8 Enterprises (Holdings) Group insiders own about HK$23m worth of shares (which is 55% of the company). 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 F8 Enterprises (Holdings) Group Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. 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. To help with this, we've discovered 5 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in F8 Enterprises (Holdings) Group.
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.