Looking at AIA Group Limited's (HKG:1299 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
AIA Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman, Mark Tucker, for HK$40m worth of shares, at about HK$86.54 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$78.10). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Mark Tucker.
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!
Check out our latest analysis for AIA Group
I will like AIA Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
AIA Group Insiders Are Selling The Stock
We've seen more insider selling than insider buying at AIA Group recently. In total, Independent Non-Executive Chairman Mark Tucker sold HK$40m worth of shares in that time. On the other hand we note Group Chief Executive Yuan Siong Lee bought HK$46k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.05% of AIA Group shares, worth about HK$387m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The AIA Group Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at AIA Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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 AIA Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of AIA Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.