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Don’t Ignore The Fact That This Insider Just Sold Some Shares In TCL Electronics Holdings Limited (HKG:1070)


We’d be surprised if TCL Electronics Holdings Limited (HKG:1070) shareholders haven’t noticed that the CTO & Executive Director, Xiaolin Yan, recently sold HK$2.5m worth of stock at HK$3.60 per share. The eyebrow raising move amounted to a reduction of 20% in their holding.

View our latest analysis for TCL Electronics Holdings

TCL Electronics Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Xiaolin Yan is the biggest insider sale of TCL Electronics Holdings shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of HK$3.66. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 20% of Xiaolin Yan’s holding.

TCL Electronics Holdings insiders didn’t buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:1070 Insider Trading Volume June 23rd 2022

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

Insider Ownership of TCL Electronics Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that TCL Electronics Holdings insiders own 0.4% of the company, worth about HK$39m. But they may have an indirect interest through a corporate structure that we haven’t picked up on. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!

So What Do The TCL Electronics Holdings Insider Transactions Indicate?

Insiders sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For example, TCL Electronics Holdings has 5 warning signs (and 1 which is a bit concerning) we think you should know about.

Of course TCL Electronics 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.

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.



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