Insiders Find Solace Selling HK$421m In Stock With Realord Technology's Price Down 36%
Insiders at Realord Technology Company Limited (HKG:1196) sold HK$421m worth of stock at an average price of HK$3.83 a share over the past year, making the most of their investment. The company's market valuation decreased by HK$5.3b after the stock price dropped 36% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Realord Technology
The insider, Ma Chao, made the biggest insider sale in the last 12 months. That single transaction was for HK$421m worth of shares at a price of HK$3.83 each. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$6.61. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 62% of Ma Chao's stake. The only individual insider seller over the last year was Ma Chao.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Realord Technology
I will like Realord Technology 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Realord Technology, though insiders do hold about HK$6.6m worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Realord Technology Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Realord Technology insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Realord Technology. Every company has risks, and we've spotted 3 warning signs for Realord Technology you should know about.
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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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.