Don't Ignore The Insider Selling In Anchorstone Holdings

We note that the Anchorstone Holdings Limited (HKG:1592) Chairman & CEO, Yue Yun Lui, recently sold HK$710k worth of stock for HK$0.036 per share. However we note that the sale only shrunk their holding by 1.3%.

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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$0.015 per share in a -HK$750k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.033. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 3.3% of Yue Yun Lui's stake.

Yue Yun Lui divested 70.00m shares over the last 12 months at an average price of HK$0.021. 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!

View our latest analysis for Anchorstone Holdings

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. Anchorstone Holdings insiders own 68% of the company, currently worth about HK$54m based on the recent share price. 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 there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Case in point: We've spotted 4 warning signs for Anchorstone Holdings you should be aware of, and 2 of them are a bit unpleasant.

But note: Anchorstone 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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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.