We wouldn't blame Sky Light Holdings Limited (HKG:3882) shareholders if they were a little worried about the fact that Wing Fong Tang, the Chairman recently netted about HK$62m selling shares at an average price of HK$1.25. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.8%.
View our latest analysis for Sky Light Holdings
Sky Light Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Lan Zhihua bought HK$120m worth of shares at a price of HK$1.33 per share. That means that even when the share price was higher than HK$1.04 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid HK$190m for 145.00m shares. On the other hand they divested 195.00m shares, for HK$253m. Wing Fong Tang ditched 195.00m shares over the year. The average price per share was HK$1.30. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. It's great to see that Sky Light Holdings insiders own 69% of the company, worth about HK$726m. 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 Do The Sky Light Holdings Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 Sky Light Holdings. At Simply Wall St, we've found that Sky Light Holdings has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
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 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.
