Founder Baiyin Lin Just Sold A Bunch Of Shares In Leader Environmental Technologies Limited (SGX:LS9)

We wouldn't blame Leader Environmental Technologies Limited (SGX:LS9) shareholders if they were a little worried about the fact that Baiyin Lin, the Founder recently netted about S$11m selling shares at an average price of S$0.045. Probably the most concerning element of the whole transaction is that the disposal amounted to 68% of their entire holding.

Check out our latest analysis for Leader Environmental Technologies

Leader Environmental Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Baiyin Lin is the biggest insider sale of Leader Environmental Technologies shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of S$0.046. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was 68% of Baiyin Lin's holding.

Over the last year, we can see that insiders have bought 213.45m shares worth S$3.6m. But insiders sold 252.00m shares worth S$11m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of Leader Environmental Technologies

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Leader Environmental Technologies insiders own about S$35m worth of shares (which is 58% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Leader Environmental Technologies Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Leader Environmental Technologies stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Leader Environmental Technologies (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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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