Non-Executive Director Of Sino-Entertainment Technology Holdings Sold 100% Of Their Shares

We'd be surprised if Sino-Entertainment Technology Holdings Limited (HKG:6933) shareholders haven't noticed that the Non-Executive Director, Shaoning He, recently sold HK$1.7m worth of stock at HK$1.21 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

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Sino-Entertainment Technology Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Shaoning He was the biggest sale of Sino-Entertainment Technology 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$1.86. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Shaoning He's holding.

Insiders in Sino-Entertainment Technology Holdings didn't buy any shares in 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!

See our latest analysis for Sino-Entertainment Technology Holdings

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sino-Entertainment Technology Holdings insiders own about HK$299m worth of shares. That equates to 38% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Sino-Entertainment Technology Holdings Tell Us?

Insiders sold Sino-Entertainment Technology Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. When we did our research, we found 5 warning signs for Sino-Entertainment Technology Holdings (3 are a bit unpleasant!) 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.