We wouldn't blame Asia Commercial Holdings Limited (HKG:104) shareholders if they were a little worried about the fact that Yin Eav, the Founder & Executive Chairman recently netted about HK$16m selling shares at an average price of HK$1.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.8%.
Asia Commercial Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Yin Eav was the biggest sale of Asia Commercial Holdings shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.49). So it may not shed much light on insider confidence at current levels.
The chart below shows insider transactions (by 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!
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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. Asia Commercial Holdings insiders own 55% of the company, currently worth about HK$187m 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.
What Might The Insider Transactions At Asia Commercial Holdings Tell Us?
The insider sales have outweighed the insider buying, at Asia Commercial Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Asia Commercial Holdings is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
Of course Asia Commercial Holdings 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.