Market cap

Frontage Holdings Corporation (HKG: 1521)) market cap declines to HK $ 10 billion, but insiders who sold $ 8.4 million shares were able to cover their losses

Initiated to Facade management company (HKG: 1521) have sold $ 8.4 million shares at an average price of $ 6.09 per share over the past year, getting the most out of their investment. The company’s market valuation fell by HK $ 718 million after the stock price fell 6.5% over the past week, but insiders were spared painful losses.

While we never suggest that investors should base their decisions solely on what the directors of a company have done, logic dictates that you pay attention to whether insiders are buying or selling stocks.

Check out our latest analysis for Frontage Holdings

Frontage Holdings Insider Trading in the Past Year

In the past twelve months, the biggest single sale by an insider was when Executive Director Zhihe Li sold shares worth HK $ 6.1million at a price of HK 6.12. $ per share. We usually don’t like to see insider sales, but the lower the selling price, the more it concerns us. The good news is that this big sale was well above the current price of HK $ 5.05. It is therefore difficult to draw a solid conclusion. Zhihe Li was the only individual insider to sell in the past year.

Zhihe Li sold a total of 1.38 million shares during the year at an average price of US $ 6.09. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you can see the precise detail of each insider trade!

SEHK: 1,521 Insider Trading Volume October 4, 2021

If you are like me then you not want to miss it free list of growing companies that insiders buy.

Does Frontage Holdings pride itself on strong insider ownership?

Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Strong insider ownership often makes company management more concerned with the interests of shareholders. Frontage Holdings insiders own shares worth around HK $ 224 million. This equates to 2.2% of the business. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.

So what do Frontage Holdings insider trading indicate?

It doesn’t really mean much that no insider traded shares of Frontage Holdings in the past quarter. It’s great to see high levels of insider ownership, but looking back on last year, we’re not gaining the trust of Frontage Holdings insiders selling. In addition to knowing what insider trading is going on, it helps to identify the risks Frontage Holdings faces. Our analysis shows 2 warning signs for Frontage Holdings (1 is concerning!) And we strongly recommend that you consult them before investing.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

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.

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

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

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