Despite Hitting HK$0.15, Ficus Technology Holdings Insiders Still Sold Too Soon

Ficus Technology Holdings Limited's (HKG:8107) value has fallen 16% in the last week, but insiders who sold HK$3.0m worth of stock over the last year have had less success. Given that the average selling price of HK$0.21 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Ficus Technology Holdings Insider Transactions Over The Last Year

The insider, Ting Chan, made the biggest insider sale in the last 12 months. That single transaction was for HK$619k worth of shares at a price of HK$0.26 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.15). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Ting Chan.

Ting Chan ditched 14.20m shares over the year. The average price per share was HK$0.21. 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!

Check out our latest analysis for Ficus Technology Holdings

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Insiders At Ficus Technology Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of Ficus Technology Holdings shares. Specifically, insider Ting Chan ditched HK$2.3m 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.

Insider Ownership Of Ficus Technology 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. Ficus Technology Holdings insiders own about HK$112m worth of shares (which is 54% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Ficus Technology Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ficus Technology Holdings. When we did our research, we found 6 warning signs for Ficus Technology Holdings (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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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.