Some Tycoon Group Holdings Limited (HKG:3390) shareholders may be a little concerned to see that the Executive Chairman & CEO, Ka Chun Wong, recently sold a substantial HK$37m worth of stock at a price of HK$0.29 per share. That's a big disposal, and it decreased their holding size by 30%, which is notable but not too bad.
We've discovered 6 warning signs about Tycoon Group Holdings. View them for free.The Last 12 Months Of Insider Transactions At Tycoon Group Holdings
In fact, the recent sale by Executive Chairman & CEO Ka Chun Wong was not their only sale of Tycoon Group Holdings shares this year. Earlier in the year, they fetched HK$4.20 per share in a -HK$84m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.46). So it is hard to draw any strong conclusion from it.
Ka Chun Wong sold a total of 149.53m shares over the year at an average price of HK$0.82. 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!
View our latest analysis for Tycoon Group Holdings
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 Of Tycoon Group Holdings
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. Tycoon Group Holdings insiders own about HK$196m worth of shares (which is 54% 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.
What Might The Insider Transactions At Tycoon Group Holdings Tell Us?
The stark truth for Tycoon Group Holdings is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To that end, you should learn about the 6 warning signs we've spotted with Tycoon Group Holdings (including 2 which are potentially serious).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.