Trade Alert: Founder & Executive Chairman Of Jolimark Holdings Pak Yin Au Has Sold Stock
Some Jolimark Holdings Limited (HKG:2028) shareholders may be a little concerned to see that the Founder & Executive Chairman, Pak Yin Au, recently sold a substantial HK$71m worth of stock at a price of HK$0.55 per share. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Jolimark Holdings
Notably, that recent sale by Pak Yin Au is the biggest insider sale of Jolimark 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$4.21, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 29% of Pak Yin Au's holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Jolimark Holdings
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Does Jolimark Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Jolimark Holdings insiders own 40% of the company, currently worth about HK$1.5b 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 Does This Data Suggest About Jolimark Holdings Insiders?
An insider hasn't bought Jolimark 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jolimark Holdings. To that end, you should learn about the 5 warning signs we've spotted with Jolimark Holdings (including 4 which are a bit unpleasant).
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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.