This Insider Has Just Sold Shares In Mindtell Technology

Anyone interested in Mindtell Technology Limited (HKG:8611) should probably be aware that a company insider, Yan Chee Liu, recently divested HK$2.5m worth of shares in the company, at an average price of HK$0.13 each. The eyebrow raising move amounted to a reduction of 34% in their holding.

Check out our latest analysis for Mindtell Technology

Mindtell Technology Insider Transactions Over The Last Year

Notably, that recent sale by Yan Chee Liu is the biggest insider sale of Mindtell Technology shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.29. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 34% of Yan Chee Liu's stake.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Mindtell Technology

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mindtell Technology insiders own about HK$86m worth of shares (which is 75% 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 Do The Mindtell Technology 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mindtell Technology. When we did our research, we found 5 warning signs for Mindtell Technology (2 are a bit concerning!) that we believe deserve your full attention.

Of course Mindtell Technology 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.