Despite a 16% gain in PC Partner Group Limited's (HKG:1263) stock price this week, shareholders shouldn't let up. In spite of the relatively cheap prices, insiders made the decision to sell HK$211m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for PC Partner Group
PC Partner Group Insider Transactions Over The Last Year
The Non-Executive Director Mee-Tak Wong Ho made the biggest insider purchase in the last 12 months. That single transaction was for HK$211m worth of shares at a price of HK$3.84 each. We do like to see buying, but this purchase was made at well below the current price of HK$9.15. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In total, PC Partner Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of PC Partner Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. PC Partner Group insiders own 49% of the company, currently worth about HK$1.7b 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 PC Partner Group Insider Transactions Indicate?
The fact that there have been no PC Partner Group insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the PC Partner Group insiders selling. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for PC Partner Group (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
But note: PC Partner Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.