How Many Insiders Sold Fire Rock Holdings Limited (HKG:8345) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Fire Rock Holdings Limited (HKG:8345).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for Fire Rock Holdings
Fire Rock Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Po Hu for HK$5.2m worth of shares, at about HK$4.40 per share. That means that even when the share price was below the current price of HK$4.58, an insider wanted to cash in some shares. While their view may have changed since they sold, this isn’t a particularly bullish sign. When an insider sells below the current price, it does tend to make us wonder about the current valuation. We note that the biggest single sale was only 4.9% of Po Hu’s holding. Po Hu was the only individual insider to sell shares in the last twelve months.
Po Hu ditched 2.13m shares over the year. The average price per share was CN¥4.31. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Fire Rock Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Fire Rock Holdings insiders own 64% of the company, worth about HK$934m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Fire Rock Holdings Insiders?
An insider sold Fire Rock Holdings shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. But it is good to see that Fire Rock Holdings is growing earnings. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Along with insider transactions, I recommend checking if Fire Rock Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
