Have SITC International Holdings Insiders Been Selling Stock?

We wouldn't blame SITC International Holdings Company Limited (HKG:1308) shareholders if they were a little worried about the fact that Kecheng Liu, the CFO, GM of Finance Center & Investment Centre and Executive Director recently netted about HK$77m selling shares at an average price of HK$47.86. However, that sale only accounted for 4.2% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At SITC International Holdings

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board, Xianxiang Yang, for HK$262m worth of shares, at about HK$33.00 per share. That means that an insider was selling shares at slightly below the current price (HK$49.46). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 3.3% of Xianxiang Yang's stake.

SITC International Holdings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for SITC International Holdings

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. SITC International Holdings insiders own about HK$14b worth of shares (which is 10% of the company). 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 SITC International Holdings Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SITC International Holdings. Our analysis shows 3 warning signs for SITC International Holdings (1 can't be ignored!) and we strongly recommend you look at these before investing.

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.

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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