Have Asia Tele-Net and Technology Insiders Been Selling Stock?
We wouldn't blame Asia Tele-Net and Technology Corporation Limited (HKG:679) shareholders if they were a little worried about the fact that Kwok Hing Lam, the Executive Chairman & MD recently netted about HK$111m selling shares at an average price of HK$8.68. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.
Asia Tele-Net and Technology Insider Transactions Over The Last Year
Notably, that recent sale by Kwok Hing Lam is the biggest insider sale of Asia Tele-Net and Technology shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$14.70). 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. It is worth noting that this sale was only 25% of Kwok Hing Lam's holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Asia Tele-Net and Technology
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10% of Asia Tele-Net and Technology shares, worth about HK$576m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Asia Tele-Net and Technology Tell Us?
An insider sold Asia Tele-Net and Technology shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Asia Tele-Net and Technology you should be aware of, and 1 of these is concerning.
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.