We wouldn't blame Honliv Healthcare Management Group Company Limited (HKG:9906) shareholders if they were a little worried about the fact that Hongchao Qin, the Non-Executive Director recently netted about HK$114m selling shares at an average price of HK$1.91. That's a big disposal, and it decreased their holding size by 45%, which is notable but not too bad.
Check out our latest analysis for Honliv Healthcare Management Group
Honliv Healthcare Management Group Insider Transactions Over The Last Year
In fact, the recent sale by Hongchao Qin was the biggest sale of Honliv Healthcare Management Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$1.87. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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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. A high insider ownership often makes company leadership more mindful of shareholder interests. Honliv Healthcare Management Group insiders own about HK$830m worth of shares (which is 74% of the company). 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 Honliv Healthcare Management Group Insider Transactions Indicate?
An insider sold Honliv Healthcare Management Group 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Honliv Healthcare Management Group. In terms of investment risks, we've identified 1 warning sign with Honliv Healthcare Management Group and understanding it should be part of your investment process.
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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.