Insiders Who Sold Ficus Technology Holdings Missed Out On 14% Stock Increase
Ficus Technology Holdings Limited's (HKG:8107) stock rose 14% last week, but insiders who sold HK$3.0m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of HK$0.21, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
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.
The Last 12 Months Of Insider Transactions At Ficus Technology Holdings
Over the last year, we can see that the biggest insider sale was by the insider, Ting Chan, for HK$619k worth of shares, at about HK$0.26 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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 HK$0.025. So it is hard to draw any strong conclusion from it. Ting Chan was the only individual insider to sell shares in the last twelve months.
Ting Chan sold a total of 14.20m shares over the year at an average price of HK$0.21. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Ficus Technology 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.
Insider Ownership Of Ficus Technology Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Ficus Technology Holdings insiders own 53% of the company, worth about HK$18m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Ficus Technology Holdings Tell Us?
The fact that there have been no Ficus Technology Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Ficus Technology Holdings, we can't say the same about the selling of shares. 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. To that end, you should learn about the 6 warning signs we've spotted with Ficus Technology Holdings (including 5 which are concerning).
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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