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Don't Ignore The Insider Selling In Pangaea Connectivity Technology

パンゲアコネクティビティテクノロジーのインサイダーセールスを無視しないでください

Simply Wall St ·  2023/11/04 20:00

We wouldn't blame Pangaea Connectivity Technology Limited (HKG:1473) shareholders if they were a little worried about the fact that Yui Kong Fung, the Executive Chairman & CEO recently netted about HK$25m selling shares at an average price of HK$0.25. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

View our latest analysis for Pangaea Connectivity Technology

The Last 12 Months Of Insider Transactions At Pangaea Connectivity Technology

In fact, the recent sale by Yui Kong Fung was the biggest sale of Pangaea Connectivity Technology shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.12. So it may not shed much light on insider confidence at current levels.

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!

insider-trading-volume
SEHK:1473 Insider Trading Volume November 5th 2023

I will like Pangaea Connectivity Technology better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Pangaea Connectivity Technology insiders own 75% of the company, worth about HK$86m. 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 Pangaea Connectivity Technology Insiders?

An insider hasn't bought Pangaea Connectivity Technology 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Pangaea Connectivity Technology you should be aware of, and 2 of them make us uncomfortable.

But note: Pangaea Connectivity Technology 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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