Some Ko Yo Chemical (Group) Limited (HKG:827) shareholders may be a little concerned to see that insider Chit Lam recently sold a whopping CN¥14m worth of stock at a price of CN¥0.11 per share. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.
Ko Yo Chemical (Group) Insider Transactions Over The Last Year
In fact, the recent sale by Chit Lam was the biggest sale of Ko Yo Chemical (Group) 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$0.15, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 42% of Chit Lam's stake.
The chart below shows insider transactions (by 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 of Ko Yo Chemical (Group)
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Ko Yo Chemical (Group) insiders own 33% of the company, worth about HK$227m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Ko Yo Chemical (Group) Insiders?
An insider hasn't bought Ko Yo Chemical (Group) 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.