Have Kidsland International Holdings Insiders Been Selling Stock?

Some Kidsland International Holdings Limited (HKG:2122) shareholders may be a little concerned to see that the Chairman & CEO, Ching Yiu Lee, recently sold a substantial HK$29m worth of stock at a price of HK$0.27 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Kidsland International Holdings

Notably, that recent sale by Ching Yiu Lee is the biggest insider sale of Kidsland International Holdings shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.24. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 398.91m shares for HK$47m. On the other hand they divested 105.00m shares, for HK$29m. In the last twelve months there was more buying than selling by Kidsland International Holdings insiders. Their average price was about HK$0.12. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

View our latest analysis for Kidsland International Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Kidsland International Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Kidsland International Holdings insiders own about HK$189m worth of shares (which is 70% of the company). 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 Does This Data Suggest About Kidsland International Holdings Insiders?

The stark truth for Kidsland International Holdings is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Kidsland International Holdings you should be aware of, and 3 of these can't be ignored.

Of course Kidsland International Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.