JTF International Holdings Insiders Who Sold Avert HK$74m Market Cap Dip

Insiders seem to have made the most of their holdings by selling CN¥57m worth of JTF International Holdings Limited (HKG:9689) stock at an average sell price of CN¥0.44 during the past year. After the stock price dropped 13% last week, the company's market value declined by HK$74m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At JTF International Holdings

Over the last year, we can see that the biggest insider sale was by the Executive Director, Yayi Xu, for HK$33m worth of shares, at about HK$0.44 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.56. 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. 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. It is worth noting that this sale was 100% of Yayi Xu's holding. The only individual insider seller over the last year was Yayi Xu.

Yayi Xu sold a total of 130.12m shares over the year at an average price of CN¥0.44. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for JTF 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).

Does JTF International Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at JTF International Holdings, though insiders do hold about HK$11k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About JTF International Holdings Insiders?

It doesn't really mean much that no insider has traded JTF International Holdings shares in the last quarter. The insider transactions at JTF International Holdings are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in JTF International Holdings.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.