Chairman & CEO Of Prosperous Printing Sold 27% Of Their Shares

We'd be surprised if Prosperous Printing Company Limited (HKG:8385) shareholders haven't noticed that the Chairman & CEO, Sam Ming Lam, recently sold HK$2.2m worth of stock at HK$0.13 per share. The eyebrow raising move amounted to a reduction of 27% in their holding.

Check out our latest analysis for Prosperous Printing

Prosperous Printing Insider Transactions Over The Last Year

Notably, that recent sale by Sam Ming Lam is the biggest insider sale of Prosperous Printing shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.16. 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. 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 only 27% of Sam Ming Lam's holding.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Prosperous Printing insiders own 55% of the company, worth about HK$7.8m. 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 Prosperous Printing Tell Us?

An insider hasn't bought Prosperous Printing stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To that end, you should learn about the 4 warning signs we've spotted with Prosperous Printing (including 3 which are a bit concerning).

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.