We wouldn't blame SuperRobotics Holdings Limited (HKG:8176) shareholders if they were a little worried about the fact that Zhituan Su, a company insider, recently netted about HK$5.3m selling shares at an average price of HK$0.025. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
Notably, that recent sale by insider Zhituan Su was not the only time they traded SuperRobotics Holdings shares this year. They previously purchased HK$7.5m worth of shares at a price of HK$0.12 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.023). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Zhituan Su was the only individual insider to buy during the last year. Notably Zhituan Su was also the biggest seller.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for SuperRobotics Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. From our data, it seems that SuperRobotics Holdings insiders own 13% of the company, worth about HK$2.1m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. But insiders own relatively little of the company, from what we can see. So the company doesn't look great on this analysis. 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 4 warning signs for SuperRobotics Holdings (2 are significant!) that we believe deserve your full attention.
Of course SuperRobotics 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.