We'd be surprised if Stella International Holdings Limited (HKG:1836) shareholders haven't noticed that the Independent Non-Executive Director, Peter Bolliger, recently sold HK$1.5m worth of stock at HK$9.81 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
View our latest analysis for Stella International Holdings
Stella International Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Peter Bolliger was the biggest sale of Stella International Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$9.62. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
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!
I will like Stella International 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.
Does Stella International Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Stella International Holdings insiders own 11% of the company, currently worth about HK$851m 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 Stella International Holdings Insider Transactions Indicate?
An insider hasn't bought Stella International Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. You'd be interested to know, that we found 1 warning sign for Stella International Holdings and we suggest you have a look.
Of course Stella International Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.