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Shares of Ever Harvest Group Holdings Limited (HKG:1549) have fallen 12% this week, offering comfort to those who sold earlier in the year

The share price of Ever Harvest Group Holdings Limited (HKG:1549) fell 12% the previous week, but insiders who sold HK$7.2 million in shares over the past year were less fortunate. Since the average sale price of HK$0.14 is still lower than the current share price, insiders would probably have been better off holding their shares.

While insider trading isn’t the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider trading altogether.

However, if you prefer to see where opportunities and risks are within the industry of 1549you can view our analysis on the shipping industry in Hong Kong.

The last 12 months of insider trading at Ever Harvest Group Holdings

In the past twelve months, the largest single insider sale occurred when CEO and Executive Director Tak Fung Lau sold HK$7.2 million worth of shares at a price of HK$0.14. per share. This means that even when the stock price was below the current price of HK$0.14, an insider wanted to cash out some shares. When an insider sells below the current price, it suggests that they consider this lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. However, while insider selling is sometimes discouraging, this is only a weak signal. We note that the largest single sale was Tak Fung Lau’s 100% stake. The only individual insider seller in the past year was Tak Fung Lau.

You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!

SEHK:1549 Insider Trading Volume August 23, 2022

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

Ever Harvest Group Holdings Insiders Recently Bought Stock

We’ve seen Ever Harvest Group Holdings insiders buy stock over the past three months. Executive Chairman Yu Leung Lau bought HK$242,000 worth of shares around this time. It’s good to see insider buying, as well as the lack of recent sellers. But in this case, the amount purchased means that the recent transaction may not be very significant on its own.

Does Ever Harvest Group Holdings boast of high insider ownership?

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders of Ever Harvest Group Holdings own 66% of the company, which is currently worth around HK$146 million based on recent share price. I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.

So what does this data suggest about Ever Harvest Group Holdings insiders?

It is certainly positive to see the recent insider buying. On the other hand, the history of transactions, over the last year, is not so positive. Overall, we would prefer to see more sustained buying from directors, but with significant insider participation and more recent buying, Ever Harvest Group Holdings insiders are reasonably well aligned and optimistic for the future. . While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. In terms of investment risks, we have identified 3 warning signs with Ever Harvest Group Holdings and understanding them should be part of your investment process.

Sure Ever Harvest Group Holdings may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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