Don't Ignore The Fact That This Insider Just Sold Some Shares In JLogo Holdings Limited (HKG:8527)

Simply Wall St
November 25, 2021
Source: Shutterstock

Anyone interested in JLogo Holdings Limited (HKG:8527) should probably be aware that the Executive Chairlady, Yeun Ching Low, recently divested HK$3.6m worth of shares in the company, at an average price of HK$0.16 each. However, the silver lining is that the sale only reduced their total holding by 8.0%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for JLogo Holdings

JLogo Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Yeun Ching Low is the biggest insider sale of JLogo Holdings 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$2.76. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 8.0%of Yeun Ching Low's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:8527 Insider Trading Volume November 25th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does JLogo Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. JLogo Holdings insiders own 93% of the company, currently worth about HK$1.3b based on the recent share price. 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 JLogo Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. Every company has risks, and we've spotted 3 warning signs for JLogo Holdings (of which 1 is significant!) you should know about.

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, but not derivative transactions.

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