Some Tian Ge Interactive Holdings Limited (HKG:1980) shareholders may be a little concerned to see that the Non-Executive Director, Xiangdong Xiong, recently sold a substantial HK$15m worth of stock at a price of HK$0.58 per share. That diminished their holding by a very significant 65%, which arguably implies a strong desire to reallocate capital.
Tian Ge Interactive Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Xiangdong Xiong was the biggest sale of Tian Ge Interactive Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$0.57. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Xiangdong Xiong divested 46.27m shares over the last 12 months at an average price of CN¥0.56. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of Tian Ge Interactive Holdings shares, worth about HK$214m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Tian Ge Interactive Holdings Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Tian Ge Interactive Holdings is showing 5 warning signs in our investment analysis, and 2 of those shouldn't be ignored...
Of course Tian Ge Interactive Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.
