Some Lever Style Corporation (HKG:1346) shareholders may be a little concerned to see that the Executive Vice Chairman, Yuk Mau Chan, recently sold a substantial HK$7.2m worth of stock at a price of HK$0.78 per share. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.
Lever Style Insider Transactions Over The Last Year
Notably, that recent sale by Yuk Mau Chan is the biggest insider sale of Lever Style shares that we've seen in the last year. That means that even when the share price was below the current price of HK$0.85, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 42% of Yuk Mau Chan's holding.
Happily, we note that in the last year insiders paid HK$2.0m for 2.54m shares. But they sold 9.20m shares for HK$7.2m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Lever Style Boast High 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. Insiders own 6.7% of Lever Style shares, worth about HK$36m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Lever Style Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Lever Style, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Lever Style 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.
