Insiders Find Solace Selling HK$53m In Stock With AI Energy Engineering Holdings' Price Down 11%
Insiders seem to have made the most of their holdings by selling HK$53m worth of AI Energy Engineering Holdings Limited (HKG:1751) stock at an average sell price of HK$0.45 during the past year. After the stock price dropped 11% last week, the company's market value declined by HK$25m, but insiders were able to mitigate their losses.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
AI Energy Engineering Holdings Insider Transactions Over The Last Year
The insider, Vincent Ip, made the biggest insider sale in the last 12 months. That single transaction was for HK$13m worth of shares at a price of HK$0.93 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.68. So it may not tell us anything about how insiders feel about the current share price. Notably Vincent Ip was also the biggest buyer, having purchased HK$19m worth of shares.
Over the last year, we can see that insiders have bought 78.54m shares worth HK$19m. On the other hand they divested 119.36m shares, for HK$53m. Over the last year we saw more insider selling of AI Energy Engineering Holdings shares, than buying. 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!
Check out our latest analysis for AI Energy Engineering Holdings
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does AI Energy Engineering Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. AI Energy Engineering Holdings insiders own about HK$51m worth of shares. That equates to 26% of the company. 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 AI Energy Engineering Holdings Tell Us?
It doesn't really mean much that no insider has traded AI Energy Engineering Holdings shares in the last quarter. Our analysis of AI Energy Engineering Holdings insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. You'd be interested to know, that we found 2 warning signs for AI Energy Engineering Holdings and we suggest you have a look.
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.