Don't Ignore The Insider Selling In Ju Teng International Holdings

We note that the Ju Teng International Holdings Limited (HKG:3336) Chief Strategy Officer & Executive Director, Hui-Chin Chiu, recently sold HK$528k worth of stock for HK$2.11 per share. On the bright side, that's just a small sale and only reduced their holding by 4.2%.

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The Last 12 Months Of Insider Transactions At Ju Teng International Holdings

In fact, the recent sale by Hui-Chin Chiu was the biggest sale of Ju Teng International Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of HK$2.02. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Ju Teng International Holdings insiders didn't buy any company stock. 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 Ju Teng International Holdings

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).

Insider Ownership Of Ju Teng International Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 6.3% of Ju Teng International Holdings shares, worth about HK$107m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Ju Teng International Holdings Tell Us?

An insider hasn't bought Ju Teng International Holdings 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. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Ju Teng International Holdings (1 doesn't sit too well with us!) that we believe deserve your full attention.

Of course Ju Teng 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.