Have Plus Group Holdings Insiders Been Selling Stock?

Some Plus Group Holdings Inc. (HKG:2486) shareholders may be a little concerned to see that the CEO & Executive Chairman, Guangjun Sun, recently sold a substantial HK$10.0m worth of stock at a price of HK$1.81 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.2%.

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Plus Group Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Guangjun Sun is the biggest insider sale of Plus Group Holdings shares that we've seen in the last year. That means that even when the share price was below the current price of HK$2.91, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 8.2% of Guangjun Sun's stake.

You can see the insider transactions (by companies and 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!

View our latest analysis for Plus Group 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 Of Plus Group Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Plus Group Holdings insiders own 70% of the company, worth about HK$232m. 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 Plus Group Holdings Insiders?

An insider hasn't bought Plus Group Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Plus Group Holdings (including 1 which shouldn't be ignored).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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