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Don't Ignore The Fact That This Insider Just Sold Some Shares In Southwest Securities International Securities Limited (HKG:812)

Simply Wall St

We wouldn't blame Southwest Securities International Securities Limited (HKG:812) shareholders if they were a little worried about the fact that Wei Law, a company insider, recently netted about HK$6.9m selling shares at an average price of HK$0.29. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Southwest Securities International Securities

The Last 12 Months Of Insider Transactions At Southwest Securities International Securities

In fact, the recent purchase by insider Wei Law was not their only acquisition of Southwest Securities International Securities shares this year. Earlier in the year, they paid HK$0.13 per share in a HK$26m purchase. Even though the purchase was made at a significantly lower price than the recent price (HK$0.30), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

SEHK:812 Recent Insider Trading, October 4th 2019

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Southwest Securities International Securities

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.5% of Southwest Securities International Securities shares, worth about HK$63m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Southwest Securities International Securities Insider Transactions Indicate?

An insider hasn't bought Southwest Securities International Securities stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. Along with insider transactions, I recommend checking if Southwest Securities International Securities is growing revenue. This free chart of historic revenue and earnings should make that easy.

But note: Southwest Securities International Securities may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 editorial-team@simplywallst.com. 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.