Some Tokyo Chuo Auction Holdings Limited (HKG:1939) shareholders may be a little concerned to see that the Chairman of Board, Shokei Ando, recently sold a substantial HK$165m worth of stock at a price of HK$0.44 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
We've discovered 4 warning signs about Tokyo Chuo Auction Holdings. View them for free.The Last 12 Months Of Insider Transactions At Tokyo Chuo Auction Holdings
Notably, that recent sale by Shokei Ando is the biggest insider sale of Tokyo Chuo Auction 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$1.50, 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 100% of Shokei Ando's holding.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Tokyo Chuo Auction Holdings
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tokyo Chuo Auction Holdings insiders own about HK$562m worth of shares (which is 75% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Tokyo Chuo Auction Holdings Tell Us?
An insider hasn't bought Tokyo Chuo Auction Holdings stock in the last three months, but there was some selling. 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 Tokyo Chuo Auction Holdings. Case in point: We've spotted 4 warning signs for Tokyo Chuo Auction Holdings you should be aware of, and 2 of these are significant.
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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.