Whilst it may not be a huge deal, we thought it was good to see that the BOE Varitronix Limited (HKG:710) Independent Non-Executive Director, Ho Hwa Chu, recently bought HK$60k worth of stock, for HK$2.00 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for BOE Varitronix

BOE Varitronix Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Non-Executive Director Ho Hwa Chu was not their only trade of BOE Varitronix shares this year. Earlier in the year, they sold shares at a price ofHK$12.37 per share in a -HK$866k transaction. That means that an insider was selling shares at slightly below the current price (HK$13.62). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Ho Hwa Chu's stake.

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!

I will like BOE Varitronix better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does BOE Varitronix Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that BOE Varitronix insiders own 6.6% of the company, worth about HK$697m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At BOE Varitronix Tell Us?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, BOE Varitronix insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BOE Varitronix. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of BOE Varitronix.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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