Have Insiders Sold Bright Future Technology Holdings Limited (HKG:1351) Shares Recently?

Some Bright Future Technology Holdings Limited (HKG:1351) shareholders may be a little concerned to see that the Chairman of the Board & CEO, Hui Dong, recently sold a substantial HK$4.2m worth of stock at a price of HK$0.10 per share. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

View our latest analysis for Bright Future Technology Holdings

The Last 12 Months Of Insider Transactions At Bright Future Technology Holdings

In fact, the recent sale by Hui Dong was the biggest sale of Bright Future Technology Holdings 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$1.06, an insider wanted to cash in some shares. 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 17%of Hui Dong's holding.

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

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Insider Ownership of Bright Future Technology Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Bright Future Technology Holdings insiders own 73% of the company, worth about HK$411m. 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 Future Technology Holdings Insiders?

An insider hasn't bought Bright Future Technology Holdings 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. But it is good to see that Bright Future Technology Holdings is growing earnings. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Bright Future Technology Holdings (1 shouldn't be ignored!) that we believe deserve your full attention.

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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