Is The of EEKA Fashion Holdings Limited (HKG:3709) And They Just Sold 93% Of Their Shares

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We wouldn't blame EEKA Fashion Holdings Limited (HKG:3709) shareholders if they were a little worried about the fact that Jinny Chui, a company insider, recently netted about CN¥332m selling shares at an average price of CN¥8.15. Probably the most concerning element of the whole transaction is that the dump amounted to 93% of their entire holding.

Check out our latest analysis for EEKA Fashion Holdings

EEKA Fashion Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Director Rui Jin for HK$1.9b worth of shares, at about HK$9.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$8.29). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Rui Jin.

You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:3709 Recent Insider Trading, November 9th 2019
SEHK:3709 Recent Insider Trading, November 9th 2019

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of EEKA Fashion Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that EEKA Fashion Holdings insiders own 79% of the company, worth about HK$4.4b. 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 Does This Data Suggest About EEKA Fashion Holdings Insiders?

An insider sold EEKA Fashion Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But note: EEKA Fashion Holdings 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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