Anyone interested in Evershine Group Holdings Limited (HKG:8022) should probably be aware that a company insider, Osman Boyraci, recently divested HK$1.9m worth of shares in the company, at an average price of HK$0.079 each. However, the silver lining is that the sale only reduced their total holding by 9.3%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Evershine Group Holdings
Over the last year, we can see that the biggest insider sale was by the insider, Wang-Chi Lau, for HK$18m worth of shares, at about HK$1.08 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.068. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 35007000 shares worth HK$37m. But insiders sold 222577000 shares worth HK$94m. All up, insiders sold more shares in Evershine Group Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Evershine Group Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Evershine Group Holdings insiders own 58% of the company, currently worth about HK$88m 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.
So What Do The Evershine Group Holdings Insider Transactions Indicate?
The stark truth for Evershine Group Holdings is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: Evershine Group Holdings 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.
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