We'd be surprised if Yidu Tech Inc. (HKG:2158) shareholders haven't noticed that the Chief Technology Officer & Chief AI Scientist, Jun Yan, recently sold HK$784k worth of stock at HK$4.13 per share. That sale was 10% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Yidu Tech

The Last 12 Months Of Insider Transactions At Yidu Tech

Notably, that recent sale by Jun Yan is the biggest insider sale of Yidu Tech shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$5.06). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 10% of Jun Yan's holding.

Jun Yan sold a total of 630.50k shares over the year at an average price of CN¥3.87. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Yidu Tech 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Yidu Tech insiders own about HK$2.1b worth of shares (which is 40% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Yidu Tech Tell Us?

An insider hasn't bought Yidu Tech stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Yidu Tech (of which 1 is a bit concerning!) you should know about.

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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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