Some First Pacific Company Limited (HKG:142) shareholders may be a little concerned to see that the CEO, MD & Executive Director, Manuel Pangilinan, recently sold a substantial HK$306m worth of stock at a price of HK$4.48 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 97% of their entire holding.
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The Last 12 Months Of Insider Transactions At First Pacific
In fact, the recent sale by Manuel Pangilinan was the biggest sale of First Pacific shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$4.77, 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. 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. It is worth noting that this sale was 97% of Manuel Pangilinan's holding.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Pacific insiders own 29% of the company, currently worth about HK$5.9b 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 Do The First Pacific Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Pacific. To that end, you should learn about the 3 warning signs we've spotted with First Pacific (including 1 which shouldn't be ignored).
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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.