Have Haidilao International Holding Insiders Been Selling Stock?

Some Haidilao International Holding Ltd. (HKG:6862) shareholders may be a little concerned to see that insider Ping Shu recently sold a substantial HK$2.8b worth of stock at a price of HK$10.62 per share. That sale reduced their total holding by 37% which is hardly insignificant, but far from the worst we've seen.

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Haidilao International Holding Insider Transactions Over The Last Year

In fact, the recent sale by Ping Shu was the biggest sale of Haidilao International Holding shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of HK$10.06. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 11.38m shares for HK$152m. But they sold 259.00m shares for HK$2.8b. 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!

Check out our latest analysis for Haidilao International Holding

I will like Haidilao International Holding better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Haidilao International Holding insiders own 64% of the company, currently worth about HK$36b 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 Haidilao International Holding Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Haidilao International Holding. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Haidilao International Holding.

But note: Haidilao International Holding 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 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.