We'd be surprised if Powerlong Real Estate Holdings Limited (HKG:1238) shareholders haven't noticed that the Executive Chairman of the Board, Kin Hong Hoi, recently sold HK$2.9m worth of stock at HK$0.32 per share. On the bright side, that sale was only 0.5% of their holding, so we doubt it's very meaningful, on its own.

Powerlong Real Estate Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Kin Hong Hoi is the biggest insider sale of Powerlong Real Estate Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.35). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 0.5% of Kin Hong Hoi's stake.

Kin Hong Hoi sold a total of 17.34m shares over the year at an average price of CN¥0.32. 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!

I will like Powerlong Real Estate Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Powerlong Real Estate Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Powerlong Real Estate Holdings insiders own about HK$957m worth of shares (which is 66% 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.

So What Does This Data Suggest About Powerlong Real Estate Holdings Insiders?

The insider sales have outweighed the insider buying, at Powerlong Real Estate Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Powerlong Real Estate Holdings. Our analysis shows 3 warning signs for Powerlong Real Estate Holdings (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.