Selling HK.AI Capital Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders
HK.AI Capital Limited's (HKG:1140) value has fallen 13% in the last week, but insiders who sold HK$7.1m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of HK$0.16 is still below the current share price.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
HK.AI Capital Insider Transactions Over The Last Year
The insider, Fang Yang, made the biggest insider sale in the last 12 months. That single transaction was for HK$4.9m worth of shares at a price of HK$0.14 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.091. So it is hard to draw any strong conclusion from it. Fang Yang was the only individual insider to sell shares in the last twelve months. Notably Fang Yang was also the biggest buyer, having purchased HK$502k worth of shares.
Fang Yang divested 43.40m shares over the last 12 months at an average price of HK$0.16. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for HK.AI Capital
I will like HK.AI Capital better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of HK.AI Capital shares, worth about HK$139m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At HK.AI Capital Tell Us?
It doesn't really mean much that no insider has traded HK.AI Capital shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of HK.AI Capital insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HK.AI Capital. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of HK.AI Capital.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.