Kingland Group Holdings Insiders Selling HK$53m In Stock Relieved As Market Cap Slides To HK$505m

By selling HK$53m worth of Kingland Group Holdings Limited (HKG:1751) stock at an average sell price of HK$0.45 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by HK$61m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Kingland Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Vincent Ip, for HK$13m worth of shares, at about HK$0.93 per share. That means that an insider was selling shares at slightly below the current price (HK$1.74). 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. 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. We note that the biggest single sale was 78% of Vincent Ip's holding. Notably Vincent Ip was also the biggest buyer, having purchased HK$19m worth of shares.

Over the last year, we can see that insiders have bought 78.54m shares worth HK$19m. But they sold 119.36m shares for HK$53m. In total, Kingland Group 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!

Check out our latest analysis for Kingland Group Holdings

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Insiders At Kingland Group Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of Kingland Group Holdings shares. In total, Executive Chairman Yifan Cao dumped HK$1.3m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Kingland Group Holdings Boast High 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. Kingland Group Holdings insiders own about HK$131m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Kingland Group Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Every company has risks, and we've spotted 4 warning signs for Kingland Group Holdings you should know about.

Of course Kingland Group 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.