Executive Chairman & Acting CEO Siu Fai Cheung Sold A Bunch Of Shares In Great Wall Terroir Holdings

We wouldn't blame Great Wall Terroir Holdings Limited (HKG:524) shareholders if they were a little worried about the fact that Siu Fai Cheung, the Executive Chairman & Acting CEO recently netted about HK$22m selling shares at an average price of HK$0.39. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Great Wall Terroir Holdings

In fact, the recent sale by Siu Fai Cheung was the biggest sale of Great Wall Terroir Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.70. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 42% of Siu Fai Cheung's holding.

Siu Fai Cheung ditched 57.60m shares over the year. The average price per share was HK$0.39. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Great Wall Terroir Holdings

I will like Great Wall Terroir Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Great Wall Terroir Holdings insiders own 40% of the company, currently worth about HK$56m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Great Wall Terroir Holdings Insiders?

An insider sold Great Wall Terroir Holdings shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. 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. Be aware that Great Wall Terroir Holdings is showing 5 warning signs in our investment analysis, and 3 of those can't be ignored...

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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.