Group Chief Executive Officer Of ASMPT Sold 38% Of Their Shares

We wouldn't blame ASMPT Limited (HKG:522) shareholders if they were a little worried about the fact that Cher Tat Ng, the Group Chief Executive Officer recently netted about HK$38m selling shares at an average price of HK$165. That sale reduced their total holding by 38% which is hardly insignificant, but far from the worst we've seen.

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ASMPT Insider Transactions Over The Last Year

Notably, that recent sale by Cher Tat Ng is the biggest insider sale of ASMPT shares that we've seen in the last year. That means that even when the share price was below the current price of HK$173, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 38% of Cher Tat Ng's holding.

In the last year ASMPT insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for ASMPT

I will like ASMPT 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

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.08% of ASMPT shares, worth about HK$56m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The ASMPT Insider Transactions Indicate?

Insiders haven't bought ASMPT stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that ASMPT is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of ASMPT.

Of course ASMPT 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.