Whilst it may not be a huge deal, we thought it was good to see that the Bright Smart Securities & Commodities Group Limited (HKG:1428) Independent Non-Executive Director, Yun Kong Yu, recently bought HK$272k worth of stock, for HK$1.36 per share. That purchase might not be huge but it did increase their holding by 33%.

See our latest analysis for Bright Smart Securities & Commodities Group

Bright Smart Securities & Commodities Group Insider Transactions Over The Last Year

The Executive Chairman Mow Lum Yip made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.5m worth of shares at a price of HK$1.09 each. Even though the purchase was made at a significantly lower price than the recent price (HK$1.37), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Bright Smart Securities & Commodities Group insiders were buying shares, but not selling. 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!

Bright Smart Securities & Commodities Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Bright Smart Securities & Commodities Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Bright Smart Securities & Commodities Group insiders own about HK$1.5b worth of shares (which is 64% 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?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Bright Smart Securities & Commodities Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Bright Smart Securities & Commodities Group has 3 warning signs and it would be unwise to ignore them.

But note: Bright Smart Securities & Commodities Group 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, but not derivative transactions.

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