We wouldn't blame AInnovation Technology Group Co., Ltd (HKG:2121) shareholders if they were a little worried about the fact that Hui Xu, the CEO & Executive Director recently netted about HK$22m selling shares at an average price of HK$3.06. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At AInnovation Technology Group
Notably, that recent sale by CEO & Executive Director Hui Xu was not the only time they traded AInnovation Technology Group shares this year. Earlier in the year, they spent HK$22m to buy shares at HK$3.06 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$3.92. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 7.26m shares worth HK$22m. But insiders sold 10.00m shares worth HK$36m. Over the last year we saw more insider selling of AInnovation Technology Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of AInnovation Technology Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that AInnovation Technology Group insiders own 18% of the company, worth about HK$389m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About AInnovation Technology Group Insiders?
Insiders sold AInnovation Technology Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that AInnovation Technology Group has 3 warning signs and it would be unwise to ignore these.
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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.
