Selling HK$8.9m Of Stock Was Lucrative Decision For Sunny Side Up Culture Holdings Insiders

Even though Sunny Side Up Culture Holdings Limited (HKG:8082) stock gained 13% last week, insiders who sold HK$8.9m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of HK$0.012, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Sunny Side Up Culture Holdings

The Last 12 Months Of Insider Transactions At Sunny Side Up Culture Holdings

Over the last year, we can see that the biggest insider sale was by the insider, Cheok Wa Chau, for HK$3.0m worth of shares, at about HK$0.013 per share. That means that even when the share price was below the current price of HK$0.034, 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. 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. We note that the biggest single sale was only 32% of Cheok Wa Chau's holding. Cheok Wa Chau was the only individual insider to sell shares in the last twelve months.

Cheok Wa Chau ditched 730.95m shares over the year. The average price per share was HK$0.012. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Sunny Side Up Culture Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. 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 Sunny Side Up Culture Holdings insiders own 45% of the company, worth about HK$32m. 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 Do The Sunny Side Up Culture Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Sunny Side Up Culture Holdings shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Sunny Side Up Culture Holdings insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sunny Side Up Culture Holdings. Every company has risks, and we've spotted 3 warning signs for Sunny Side Up Culture Holdings (of which 2 are a bit unpleasant!) you should know about.

Of course Sunny Side Up Culture Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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.