Have Insiders Sold Fangzhou Shares Recently?

Some Fangzhou Inc. (HKG:6086) shareholders may be a little concerned to see that the Executive Director, Yuming Zou, recently sold a substantial HK$21m worth of stock at a price of HK$4.27 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

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Fangzhou Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board & CEO, Fangmin Xie, sold HK$36m worth of shares at a price of HK$3.96 per share. That means that even when the share price was below the current price of HK$4.14, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 3.3% of Fangmin Xie's holding.

In the last year Fangzhou insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Fangzhou

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Insider Ownership Of Fangzhou

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Fangzhou insiders own 43% of the company, currently worth about HK$2.4b 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.

What Might The Insider Transactions At Fangzhou Tell Us?

Insiders haven't bought Fangzhou stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fangzhou. To help with this, we've discovered 2 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Fangzhou.

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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.