Independent Non-Executive Director Wai Sun Szeto Sold A Bunch Of Shares In Bright Smart Securities & Commodities Group

We'd be surprised if Bright Smart Securities & Commodities Group Limited (HKG:1428) shareholders haven't noticed that the Independent Non-Executive Director, Wai Sun Szeto, recently sold HK$1.3m worth of stock at HK$2.80 per share. In particular, we note that the sale equated to a 67% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Bright Smart Securities & Commodities Group

Bright Smart Securities & Commodities Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Mow Lum Yip, sold HK$35m worth of shares at a price of HK$1.85 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$2.90. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.0% of Mow Lum Yip's stake.

Insiders in Bright Smart Securities & Commodities Group didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Bright Smart Securities & Commodities Group insiders own 51% of the company, currently worth about HK$2.5b based on the recent share price. 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 Bright Smart Securities & Commodities Group Insiders?

An insider hasn't bought Bright Smart Securities & Commodities Group 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. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bright Smart Securities & Commodities Group. You'd be interested to know, that we found 3 warning signs for Bright Smart Securities & Commodities Group and we suggest you have a look.

But note: Bright Smart Securities & Commodities Group 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.