Have Shanghai La Chapelle Fashion Co., Ltd. (HKG:6116) Insiders Been Selling Their Stock? – Simply Wall St News


We wouldn’t blame Shanghai La Chapelle Fashion Co., Ltd. (HKG:6116) shareholders if they were a little worried about the fact that Shenghong Wang, a company insider, recently netted about HK$14m selling shares at an average price of HK$1.69. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we’ve seen.

See our latest analysis for Shanghai La Chapelle Fashion

Shanghai La Chapelle Fashion Insider Transactions Over The Last Year

In fact, the recent sale by Shenghong Wang was the biggest sale of Shanghai La Chapelle Fashion shares made by an insider individual in the last twelve months, according to our records. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$1.22). So it may not shed much light on insider confidence at current levels.

Shenghong Wang sold a total of 11647600 shares over the year at an average price of CN¥1.94. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

SEHK:6116 Recent Insider Trading, December 2nd 2019
SEHK:6116 Recent Insider Trading, December 2nd 2019

Does Shanghai La Chapelle Fashion Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 looking at our data, insiders own HK$26m worth of Shanghai La Chapelle Fashion stock, about 3.8% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. We consider this fairly low insider ownership.

So What Does This Data Suggest About Shanghai La Chapelle Fashion Insiders?

Unfortunately, there has been more insider selling of Shanghai La Chapelle Fashion stock, than buying, in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in Shanghai La Chapelle Fashion, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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