From what we can see, insiders were net sellers in Shoucheng Holdings Limited's (HKG:697 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Shoucheng Holdings
The Executive Chairman of the Board, Tianyang Zhao, made the biggest insider sale in the last 12 months. That single transaction was for HK$2.6m worth of shares at a price of HK$1.86 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$1.33). So it may not tell us anything about how insiders feel about the current share price. Tianyang Zhao was the only individual insider to sell over the last year.
Tianyang Zhao divested 2.70m shares over the last 12 months at an average price of HK$1.84. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Shoucheng 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
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. We usually like to see fairly high levels of insider ownership. Based on our data, Shoucheng Holdings insiders have about 0.09% of the stock, worth approximately HK$8.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Do The Shoucheng Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Shoucheng Holdings shares in the last quarter. Our analysis of Shoucheng Holdings insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Shoucheng Holdings has 1 warning sign and it would be unwise to ignore it.
But note: Shoucheng Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.