An Insider At Bosideng International Holdings Lowered Their Holding Recently

Insiders were net sellers of Bosideng International Holdings Limited's (HKG:3998 ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Bosideng International Holdings Insider Transactions Over The Last Year

The Senior VP & Executive Director, Jinsong Rui, made the biggest insider sale in the last 12 months. That single transaction was for HK$12m worth of shares at a price of HK$4.46 each. That means that an insider was selling shares at around the current price of HK$4.40. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Jinsong Rui was the only individual insider to sell over the last year.

Jinsong Rui sold a total of 5.39m shares over the year at an average price of CN¥4.50. 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!

View our latest analysis for Bosideng International Holdings

I will like Bosideng International Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Bosideng International Holdings Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Bosideng International Holdings shares. In total, Senior VP & Executive Director Jinsong Rui sold HK$24m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. 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 Bosideng International Holdings insiders own 2.8% of the company, worth about HK$1.4b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Bosideng International Holdings Tell Us?

An insider hasn't bought Bosideng International Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Bosideng International Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bosideng International Holdings. For example - Bosideng International Holdings has 2 warning signs we think you should be aware of.

But note: Bosideng International 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 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.