Great Wall Terroir Holdings Insiders Selling HK$23m In Stock Relieved As Market Cap Slides To HK$454m
Insiders at Great Wall Terroir Holdings Limited (HKG:524) sold HK$23m worth of stock at an average price of HK$0.39 a share over the past year, making the most of their investment. The company’s market cap plunged by HK$78m after price dropped by 15% last week but insiders were able to limit their loss to an extent.
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.
Great Wall Terroir Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive Chairman & Acting CEO, Siu Fai Cheung, for HK$22m worth of shares, at about HK$0.39 per share. That means that an insider was selling shares at slightly below the current price (HK$1.92). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 42% of Siu Fai Cheung's holding. Siu Fai Cheung was the only individual insider to sell shares in the last twelve months.
Siu Fai Cheung sold a total of 57.70m shares over the year at an average price of 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!
See our latest analysis for Great Wall Terroir Holdings
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Does Great Wall Terroir Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 33% of Great Wall Terroir Holdings shares, worth about HK$151m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Great Wall Terroir Holdings Tell Us?
It doesn't really mean much that no insider has traded Great Wall Terroir Holdings shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Great Wall Terroir Holdings insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Great Wall Terroir Holdings. Be aware that Great Wall Terroir Holdings is showing 5 warning signs in our investment analysis, and 3 of those are potentially serious...
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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.