How many shares of the Yangtze Fiber Optic and Cable Joint Stock Company (HKG: 6869) have been sold by insiders in the past year?
We have lost count of the number of times insiders have racked up shares in a company that is improving significantly. Unfortunately, there are also many examples of stock prices plummeting after insiders sell stocks. We will therefore examine whether insiders have bought or sold shares of Yangtze Fiber Optic and Cable Limited Liability Company (HKG: 6869).
What is an insider?
It is perfectly legal for company insiders, including members of the board of directors, to buy and sell shares in a company. However, these insiders should disclose their trading activities and not trade on the basis of inside information.
We don’t believe shareholders should just follow insider trading. But it makes perfect sense to keep an eye on what insiders are doing. As Peter Lynch said, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”
See our latest review for Yangtze Optical Fiber And Cable Limited
Yangtze Optical Fiber And Cable Limited Insider Trading During The Past Year
Over the past year, we can see that the biggest insider sale has been done by non-executive director Frank Dorjee for HK $ 1.7 million in shares, at around HK $ 13.76 per action. While insider selling is negative, for us it is even more negative if stocks are sold for a lower price. The upside is that this sale took place above the last price (HK $ 10.12). It is therefore difficult to draw a solid conclusion. Frank Dorjee was the only individual insider to sell shares in the past twelve months.
You can see insider trading (by companies and individuals) over the past year illustrated in the graph below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
I will like Yangtze Optical Fiber And Cable Limited better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Insider Property of Yangtze Optical Fiber And Cable Limited
Many investors like to check how well a company is owned by insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. Our data indicates that insiders of Yangtze Optical Fiber And Cable Limited own shares worth approximately HK $ 67 million (or 0.4% of the company). However, it is possible that insiders will have an indirect interest through a more complex structure. While better than nothing, we’re not overly impressed with these holdings.
What might insider trading at Yangtze Optical Fiber And Cable Limited tell us?
We certainly don’t mind the fact that there haven’t been any recent insider trading from Yangtze Optical Fiber And Cable Limited. We are not very encouraged by the insider trading of Yangtze Optical Fiber And Cable Limited. But we love that the insiders own a good chunk of the business. In addition to knowing the ongoing insider trading, it is helpful to identify the risks Yangtze Optical Fiber And Cable Limited faces. In terms of investment risks, we have identified 2 warning signs with Yangtze Optical Fiber And Cable Limited and understanding them should be part of your investment process.
But beware : Yangtze Optical Fiber And Cable Limited May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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