Executive Director & Company Secretary Wai Kong Wong Sold A Bunch Of Shares In Pangaea Connectivity Technology
Anyone interested in Pangaea Connectivity Technology Limited (HKG:1473) should probably be aware that the Executive Director & Company Secretary, Wai Kong Wong, recently divested HK$2.1m worth of shares in the company, at an average price of HK$1.23 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
Pangaea Connectivity Technology Insider Transactions Over The Last Year
In fact, the recent sale by Wai Kong Wong was the biggest sale of Pangaea Connectivity Technology shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$1.07. So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 1.22m shares for HK$958k. But insiders sold 1.67m shares worth HK$2.1m. 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!
View our latest analysis for Pangaea Connectivity Technology
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. Pangaea Connectivity Technology insiders own about HK$695m worth of shares (which is 55% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Pangaea Connectivity Technology Tell Us?
The insider sales have outweighed the insider buying, at Pangaea Connectivity Technology, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Pangaea Connectivity Technology makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Pangaea Connectivity Technology (2 make us uncomfortable!) that we believe deserve your full attention.
But note: Pangaea Connectivity Technology 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.