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Some Hypebeast Limited (HKG:150) shareholders may be a little concerned to see that the Founder, Pak Wing Ma, recently sold a whopping HK$9.4m worth of stock at a price of HK$1.60 per share. However, that sale only accounted for 0.4% of their holding, so arguably it doesn't say much about their conviction.
See our latest analysis for Hypebeast
Hypebeast Insider Transactions Over The Last Year
In fact, the recent sale by Founder Pak Wing Ma was not their only sale of Hypebeast shares this year. They previously made an even bigger sale of -HK$9.4m worth of shares at a price of HK$1.60 per share. That means that an insider was selling shares at around the current price of HK$1.58. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
You can see the insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Hypebeast
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hypebeast insiders own about HK$2.2b worth of shares (which is 73% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Hypebeast Tell Us?
An insider sold Hypebeast shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Hypebeast makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Along with insider transactions, I recommend checking if Hypebeast is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Hypebeast may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.
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. Thank you for reading.