Don't Ignore The Fact That This Insider Just Sold Some Shares In Bright Smart Securities & Commodities Group Limited (HKG:1428)

Some Bright Smart Securities & Commodities Group Limited (HKG:1428) shareholders may be a little concerned to see that the Chairman of the Board, Mow Lum Yip, recently sold a substantial HK$77m worth of stock at a price of HK$2.06 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.4%.

View our latest analysis for Bright Smart Securities & Commodities Group

The Last 12 Months Of Insider Transactions At Bright Smart Securities & Commodities Group

In fact, the recent sale by Mow Lum Yip was the biggest sale of Bright Smart Securities & Commodities Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$2.12, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 3.4% of Mow Lum Yip's holding.

Mow Lum Yip divested 81.97m shares over the last 12 months at an average price of HK$2.16. 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!

I will like Bright Smart Securities & Commodities Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Bright Smart Securities & Commodities Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bright Smart Securities & Commodities Group insiders own about HK$2.5b worth of shares (which is 69% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Bright Smart Securities & Commodities Group Tell Us?

An insider sold Bright Smart Securities & Commodities Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Bright Smart Securities & Commodities Group makes money, and is growing profits. 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 help with this, we've discovered 3 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Bright Smart Securities & Commodities Group.

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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This article by Simply Wall St is general in nature. 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.
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