Selling Blue River Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Even though Blue River Holdings Limited (HKG:498) has fallen by 13% over the past week , insiders who sold HK$36m worth of stock over the past year have had less luck. Given that the average selling price of HK$0.29 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Blue River Holdings

The Last 12 Months Of Insider Transactions At Blue River Holdings

The insider, Kitchell Bin, made the biggest insider sale in the last 12 months. That single transaction was for HK$15m worth of shares at a price of HK$0.30 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.14). So it is hard to draw any strong conclusion from it.

Insiders in Blue River Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Blue River 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. We usually like to see fairly high levels of insider ownership. Blue River Holdings insiders own about HK$57m worth of shares. That equates to 33% of the company. 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 Blue River Holdings Insiders?

The fact that there have been no Blue River Holdings insider transactions recently certainly doesn't bother us. Our analysis of Blue River Holdings insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. Our analysis shows 2 warning signs for Blue River Holdings (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

But note: Blue River Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com