In This Article:
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Tian Ge Interactive Holdings Limited (HKG:1980).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Tian Ge Interactive Holdings
The Last 12 Months Of Insider Transactions At Tian Ge Interactive Holdings
Chairman & CEO Zhengjun Fu made the biggest insider sale in the last 12 months. That single transaction was for HK$94m worth of shares at a price of HK$4.40 each. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is HK$3.29. So it may not shed much light on insider confidence at current levels. Zhengjun Fu was the only individual insider to sell over the last year.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Tian Ge Interactive Holdings
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. We usually like to see fairly high levels of insider ownership. Tian Ge Interactive Holdings insiders own about HK$1.0b worth of shares (which is 24% of the company). 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 Does This Data Suggest About Tian Ge Interactive Holdings Insiders?
It doesn’t really mean much that no insider has traded Tian Ge Interactive Holdings shares in the last quarter. While we feel good about high insider ownership of Tian Ge Interactive Holdings, we can’t say the same about the selling of shares. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .