We note that the Anchorstone Holdings Limited (HKG:1592) Chairman & CEO, Yue Yun Lui, recently sold HK$750k worth of stock for HK$0.015 per share. However we note that the sale only shrunk their holding by 3.3%.
Anchorstone Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Chairman & CEO Yue Yun Lui was not their only sale of Anchorstone Holdings shares this year. Earlier in the year, they fetched HK$0.08 per share in a -HK$964k sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.034). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid HK$1.1m for 17.67m shares. But insiders sold 75.30m shares worth HK$2.6m. In total, Anchorstone Holdings insiders sold more than they bought over the last year. The sellers received a price of around HK$0.035, on average. It's not ideal to see that insiders have sold at around the current price. While some insiders have decided to take some money off the table, we wouldn't put too much weight on this fact. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Anchorstone Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Anchorstone Holdings insiders own 70% of the company, worth about HK$57m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Anchorstone Holdings Insider Transactions Indicate?
An insider sold Anchorstone Holdings shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. When we did our research, we found 5 warning signs for Anchorstone Holdings (2 are significant!) that we believe deserve your full attention.
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.
