Insider Selling

FinVolution’s top-level Insiders file Form 144s in a declining market

The image's background depicts a person using laptop which screen showing financial chart, with the blog introduction mentioning the 2 insiders' filed form 144 worth $4.2 million on top.

Fintech stocks this year have been facing a decline: one example is FinVolution Group (FINV: US), formerly known as PPDAI Group Inc. The China-based fintech platform focuses on connecting underserved borrowers with financial institutions. It currently trades on the NYSE under the ticker “FINV” while possessing a present M Cap of almost $1.34 billion. 

While most company stocks have been receding under the weight of inflation and new policies, FinVolution has fared reasonably well this year in comparison. Due to the previous crackdown on China’s tech market, FINV did suffer but has picked up since then.

The Form144s are worth millions

All insider tradings at the company have been mostly sales of ADS (American Depository Shares). This year, three form 144s were filed by two top-level insiders at FinVolution:

  • Hu Honghui - the comp. Founder/Director/TOP5 Insider - filed two Form 144s - the first one on March 22 and the second on June 21. Combined, both forms were for a total of 668,000 ADS worth around $2.95 million. 

  • On June 15, the company CEO: Zhang Feng filed his form for 260,000 ADS valued at almost $1.2 million.

All three forms were filed for The Core Securities Co. Ltd., a Chinese wealth management firm. 

Bullish or not?

The company disclosed its financial results for the first quarter of this year. Positive findings from the report were that the company’s net revenue was up by 15.8% year on year. Along with this, the company’s cumulative user count had reached a whopping 145.3 million. 

Additionally, FinVolution was listed among 3 Chinese stocks that were keepers for contrarian trade opportunities. More bullish news that followed was FINV getting a ‘buy’ rating from Citigroup analysts, despite the fact the stock price has fallen to a current value of $4.71 since the rating. As of the moment, its stock price is down by 6.36% year-to-date.

Despite the ongoing bearish market period, the fintech industry has garnered a lot of attention. One article dictates that the fintech market would score a value of almost $309.98 billion this year. Unfortunately, the performance of this market’s stocks has been underwhelming. The intention to sell by this company’s insiders might be as expected, but the confirmation that insiders have begun selling is yet to arrive.

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