Cham Ho Is The Independent Non-Executive Director of Clifford Modern Living Holdings Limited (HKG:3686) And They Just Sold 100% Of Their Shares

Investors may wish to note that the Independent Non-Executive Director of Clifford Modern Living Holdings Limited, Cham Ho, recently netted HK$290k from selling stock, receiving an average price of HK$0.58. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.

View our latest analysis for Clifford Modern Living Holdings

The Last 12 Months Of Insider Transactions At Clifford Modern Living Holdings

In fact, the recent sale by Cham Ho was the biggest sale of Clifford Modern Living Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (HK$0.58). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Cham Ho's holding.

Cham Ho divested 700.00k shares over the last 12 months at an average price of CN¥0.60. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Clifford Modern Living Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Clifford Modern Living Holdings insiders own about HK$430m 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.

So What Does This Data Suggest About Clifford Modern Living Holdings Insiders?

Unfortunately, there has been more insider selling of Clifford Modern Living Holdings stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Clifford Modern Living Holdings is profitable and growing, we're not too worried by this. 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. 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 - Clifford Modern Living Holdings has 3 warning signs we think you should be aware of.

But note: Clifford Modern Living Holdings 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.

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