Executive Director Wing Yee Lu Sold A Bunch Of Shares In Safety Godown Company

We wouldn't blame Safety Godown Company, Limited (HKG:237) shareholders if they were a little worried about the fact that Wing Yee Lu, the Executive Director recently netted about HK$25m selling shares at an average price of HK$1.90. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

See our latest analysis for Safety Godown Company

The Last 12 Months Of Insider Transactions At Safety Godown Company

In fact, the recent sale by Wing Yee Lu was the biggest sale of Safety Godown Company shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of HK$1.87. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

All up, insiders sold more shares in Safety Godown Company than they bought, over the last year. 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!

I will like Safety Godown Company better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Safety Godown Company Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 14% of Safety Godown Company shares, worth about HK$106m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Safety Godown Company Insiders?

An insider hasn't bought Safety Godown Company stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Every company has risks, and we've spotted 3 warning signs for Safety Godown Company 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 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.