Have Insiders Sold Acme International Holdings Shares Recently?

Stock Analysis

We'd be surprised if Acme International Holdings Limited (HKG:1870) shareholders haven't noticed that the Executive Chairman, Kam Tim Kwan, recently sold HK$2.0m worth of stock at HK$1.00 per share. However, the silver lining is that the sale only reduced their total holding by 2.1%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Acme International Holdings

Notably, that recent sale by Executive Chairman Kam Tim Kwan was not the only time they sold Acme International Holdings shares this year. Earlier in the year, they fetched HK$1.00 per share in a -HK$17m sale. That means that an insider was selling shares at slightly below the current price (HK$1.09). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 14% of Kam Tim Kwan's holding.

Zhang Lin purchased 46.52m shares over the year. The average price per share was HK$1.13. 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!

Acme International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Acme International Holdings insiders own 58% of the company, currently worth about HK$393m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

The insider sales have outweighed the insider buying, at Acme International Holdings, in the last three months. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Acme International Holdings.

Of course Acme International 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, but not derivative transactions.

Find out whether Acme International Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.

Acme International Holdings Limited, an investment holding company, provides design and build solutions building maintenance unit (BMU) system works in Hong Kong, Malaysia, China, and Macau.

Adequate balance sheet with poor track record.