Trade Alert: Independent Director Of PDD Holdings Ping Leung Kam Has Sold Stock
Anyone interested in PDD Holdings Inc. (NASDAQ:PDD) should probably be aware that the Independent Director, Ping Leung Kam, recently divested US$140k worth of shares in the company, at an average price of US$82.20 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
PDD Holdings Insider Transactions Over The Last Year
Notably, that recent sale by Independent Director Ping Leung Kam was not the only time they sold PDD Holdings shares this year. They previously made an even bigger sale of -US$152k worth of shares at a price of US$99.43 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 US$77.84. So it may not tell us anything about how insiders feel about the current share price.
Insiders in PDD Holdings didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for PDD Holdings
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does PDD Holdings Boast High 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. It's great to see that PDD Holdings insiders own 32% of the company, worth about US$36b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The PDD Holdings Insider Transactions Indicate?
An insider sold PDD Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for PDD Holdings.
But note: PDD 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.