This Insider Has Just Sold Shares In Pacific Basin Shipping
Some Pacific Basin Shipping Limited (HKG:2343) shareholders may be a little concerned to see that the CEO & Executive Director, Martin Fruergaard, recently sold a substantial HK$5.6m worth of stock at a price of HK$3.99 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.7%.
Pacific Basin Shipping Insider Transactions Over The Last Year
Notably, that recent sale by Martin Fruergaard is the biggest insider sale of Pacific Basin Shipping shares that we've seen in the last year. That means that an insider was selling shares at around the current price of HK$3.89. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.
Pacific Basin Shipping insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Pacific Basin Shipping
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of Pacific Basin Shipping shares, worth about HK$112m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Pacific Basin Shipping Tell Us?
Insiders sold Pacific Basin Shipping shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Pacific Basin Shipping makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 1 warning sign with Pacific Basin Shipping and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.