Independent Director Andrew Y. Yan Sold A Bunch Of Shares In Qfin Holdings
Some Qfin Holdings, Inc. (NASDAQ:QFIN) shareholders may be a little concerned to see that the Independent Director, Andrew Y. Yan, recently sold a substantial US$4.9m worth of stock at a price of US$7.44 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
Qfin Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Hongyi Zhou bought US$23m worth of shares at a price of US$12.92 per share. That means that an insider was happy to buy shares at above the current price of US$6.76. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 2.04m shares for US$26m. But insiders sold 656.70k shares worth US$4.9m. In the last twelve months there was more buying than selling by Qfin Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Qfin Holdings
Qfin Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Qfin Holdings insiders own 20% of the company, currently worth about US$171m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Qfin Holdings Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. 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, Qfin Holdings has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
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 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.