Trade Alert: Executive Chairman Of Acme International Holdings Kam Tim Kwan Has Sold Stock

We wouldn't blame Acme International Holdings Limited (HKG:1870) shareholders if they were a little worried about the fact that Kam Tim Kwan, the Executive Chairman recently netted about HK$4.8m selling shares at an average price of HK$0.48. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.

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Acme International Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Zhang Lin, sold HK$22m worth of shares at a price of HK$0.15 per share. That means that an insider was selling shares at slightly below the current price (HK$0.48). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 77% of Zhang Lin's holding.

In total, Acme International Holdings insiders sold more than they bought over the last year. 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 Acme International Holdings

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Does Acme International Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Acme International Holdings insiders own about HK$223m worth of shares (which is 45% 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 Acme International Holdings Insiders?

The insider sales have outweighed the insider buying, at Acme International Holdings, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 4 warning signs for Acme International Holdings (1 is a bit unpleasant) you should be aware of.

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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.