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Trade Alert: Co-Founder Of Value Partners Group Cheng Hye Cheah Has Sold Stock

Simply Wall St ·  Jan 12 06:45

We wouldn't blame Value Partners Group Limited (HKG:806) shareholders if they were a little worried about the fact that Cheng Hye Cheah, the Co-Founder recently netted about HK$668m selling shares at an average price of HK$3.00. That sale reduced their total holding by 48% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Value Partners Group

Value Partners Group Insider Transactions Over The Last Year

Notably, that recent sale by Cheng Hye Cheah is the biggest insider sale of Value Partners Group shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$2.07. So it may not tell us anything about how insiders feel about the current share price.

Value Partners Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and 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!

insider-trading-volume
SEHK:806 Insider Trading Volume January 11th 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Value Partners Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Value Partners Group insiders own 24% of the company, currently worth about HK$904m based on the recent share price. 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 Do The Value Partners Group Insider Transactions Indicate?

Insiders sold Value Partners Group shares recently, but they didn't buy any. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Value Partners Group has 1 warning sign and it would be unwise to ignore this.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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