We wouldn't blame Bright Smart Securities & Commodities Group Limited (HKG:1428) shareholders if they were a little worried about the fact that Mow Lum Yip, the Executive Chairman recently netted about HK$35m selling shares at an average price of HK$1.85. However, that sale only accounted for 2.0% of their holding, so arguably it doesn't say much about their conviction.
Bright Smart Securities & Commodities Group Insider Transactions Over The Last Year
In fact, the recent sale by Mow Lum Yip was the biggest sale of Bright Smart Securities & Commodities Group 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$1.74. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Mow Lum Yip ditched 118.65m shares over the year. The average price per share was HK$1.65. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Bright Smart Securities & Commodities Group 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.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bright Smart Securities & Commodities Group insiders own about HK$1.7b worth of shares (which is 57% 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 Does This Data Suggest About Bright Smart Securities & Commodities Group Insiders?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bright Smart Securities & Commodities Group. In terms of investment risks, we've identified 3 warning signs with Bright Smart Securities & Commodities Group and understanding them should be part of your investment process.
Of course Bright Smart Securities & Commodities Group 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 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.
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