More Money In The Bank For ZXZN Qi-House Holdings Insiders Who Divested HK$43m
While ZXZN Qi-House Holdings Limited (HKG:8395) shareholders have had a good week with the stock up 14%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell HK$43m worth of stock in the past 12 months. This could be a sign of impending weakness.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
ZXZN Qi-House Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive Director & MD of Tree Limited, Mary Kathleen Babington, sold HK$17m worth of shares at a price of HK$0.28 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$2.00. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Mary Kathleen Babington's stake.
Over the last year we saw more insider selling of ZXZN Qi-House Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for ZXZN Qi-House 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 ZXZN Qi-House Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. ZXZN Qi-House Holdings insiders own about HK$2.5b worth of shares (which is 73% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At ZXZN Qi-House Holdings Tell Us?
It doesn't really mean much that no insider has traded ZXZN Qi-House Holdings shares in the last quarter. While we feel good about high insider ownership of ZXZN Qi-House Holdings, we can't say the same about the selling of shares. 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. For example - ZXZN Qi-House Holdings has 2 warning signs we think you should be aware of.
But note: ZXZN Qi-House 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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