While Oshidori International Holdings Limited (HKG:622) shareholders have had a good week with the stock up 62%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell HK$27m worth of stock in the last year, which could indicate some expected downturn.
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.
Oshidori International Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Hang-Viola Siu, for HK$15m worth of shares, at about HK$0.15 per share. That means that an insider was selling shares at slightly below the current price (HK$0.21). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 just 31% of Hang-Viola Siu's stake. Hang-Viola Siu was the only individual insider to sell over the last year.
Hang-Viola Siu sold a total of 177.50m shares over the year at an average price of HK$0.15. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Oshidori International 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. Insiders own 3.6% of Oshidori International Holdings shares, worth about HK$47m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Oshidori International Holdings Insiders?
The fact that there have been no Oshidori International Holdings insider transactions recently certainly doesn't bother us. Our analysis of Oshidori International Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oshidori International Holdings. Be aware that Oshidori International Holdings is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant...
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.
